Which of the Following Is Not a Qualitative Factor That

question 12

Multiple Choice

Which of the following is not a qualitative factor that may affect an auditor's establishment of materiality?

• A) Potential for fraud.
• B) The entity is close to violating loan covenants.
• C) Firm policy sets materiality at five per cent of pre-tax income.
• D) A small misstatement would interrupt an earnings trend.

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Definitions:

Vertical Alignment

The positioning of text or objects in relation to the top and bottom margins of a page or a container.

Page Break

A marker in document editing software that indicates where one page ends and the next begins, useful for controlling layout.

Unwanted Page

A web page or document section that is not needed or desired by the user, often appearing unexpectedly.

Vertical Alignment

The adjustment of text or objects along the top, middle, or bottom of a page or container.