Which of the Following Statements Is Not Correct About Materiality

question 51

Multiple Choice

Which of the following statements is not correct about materiality? 

• A)The concept of materiality recognizes that some matters are important for fair presentation of financial statements in conformity with GAAP, while other matters are not important.
• B)An auditor considers materiality for the aggregate level of misstatements that could be material to any one of the financial statements individually.
• C)Materiality judgments are made in light of surrounding circumstances and necessarily involve both quantitative and qualitative judgments.
• D)An auditor's consideration of materiality is influenced by the auditor's perception of the needs of a reasonable person who will rely on the financial statements.

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Definitions:

Account Payable

Liabilities or amounts owed by a company to its creditors for goods or services that have been delivered or used but not yet paid for.