Which of the Following Is the Most Important Qualitative Factor

question 72

Multiple Choice

Which of the following is the most important qualitative factor that auditors should consider when making materiality judgments?

• A)A misstatement exceeded five percent of net income.
• B)The auditor also provides consulting services to the audit client.
• C)The misstatement will cause the client to fail to meet an earnings forecast.
• D)The audit committee is not well-educated about the accounting principle in question.

---

Definitions:

Social Interaction

The process by which individuals act and react in relation to others, shaping their behavior through communication and relationships.

Infants

Young children from birth to 1 year of age, who are in the earliest stage of human life.

Deliberate Practice

A highly structured activity engaged in with the specific goal of improving performance, requiring effort and attention.

Giftedness

An exceptional level of natural ability, talent, or intelligence in one or more areas, beyond what is considered typical for one's age.