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.

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Definitions:

Miscommunication

A failure to convey or understand information accurately, leading to misunderstandings or confusion.

Semantics

The branch of linguistics and logic concerned with meaning, including the ways in which words and sentences convey meaning.

Accommodation Strategy

A conflict resolution method where one party gives in to the wishes or demands of another, often used to preserve harmony.

Alienates

Causes someone to feel isolated or estranged from others or a group.