Which of the Following Statements Is Not Correct

question 94

Multiple Choice

Which of the following statements is not correct?

• A) Materiality is a relative rather than an absolute concept.
• B) The most important base used as the criterion for deciding materiality is total assets.
• C) Qualitative factors as well as quantitative factors affect materiality.
• D) Given equal dollar amounts, frauds are usually considered more important than errors.

Recognize the goal of statistical process control in achieving and maintaining process control.

Understand the role and calculation of standard deviation in the establishment of control limits.

Recognize the significance of sample size in the context of control charts and statistical process control.

Identify the fundamentality of the Central Limit Theorem in statistical process control.

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Definitions:

Ordinary Business Transactions

Everyday activities and operations that are necessary for the running and maintenance of a business.

Formal

Following or adhering to established rules, conventions, or procedures.

Express Authority

Power granted by a principal to an agent through clear, direct communication.

Agent

An individual or entity authorized to act on behalf of another.