Which of the Following Is NOT a Qualitative Factor When

question 54

Multiple Choice

Which of the following is NOT a qualitative factor when assessing materiality?

• A) A misstatement that changes a loss into income or vice versa
• B) The existence of statutory or regulator reporting requirements that affect materiality thresholds
• C) The potential effect of the misstatement on trends, especially trends in profitability
• D) The use of simplistic numerical thresholds and rules of thumb

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Structured sets of concepts and propositions that are aimed at explaining phenomena by specifying relations among variables.

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