Which of the Following Is Not Correct About Materiality

question 68

Multiple Choice

Which of the following is not correct about materiality?

• A)The concept of materiality recognizes that some matters are more important for fair presentation of financial statements
• B)Materiality judgments are made in light of surrounding circumstances and necessarily involve quantitative and qualitative judgments
• C)Materiality should be predictable from audit to audit so that the readers of financial statements know what constitutes materiality
• D)An auditor's consideration of materiality is influenced by the auditor's perception of the need of the readers of the financial statements

Describe the concept of asymmetric information in financial markets and its consequences for lending.

Understand the significance of diversification in banking and the consequences of not diversifying.

Explain the operation of the federal funds market and the impact of interbank lending on the financial system.

Understand the concept of social inequality and its effects in society.

---

Definitions:

Literal Parts

The components of a text or statement that are understood in their primary, explicit meaning without interpretation.

Mobile Devices

Portable electronic devices with computing capabilities, including smartphones and tablets, that allow users to perform a variety of tasks on the go.

Another Language

Refers to a language that is not one's native or primary language, often learned for communication in diverse settings.

Intercultural Communication

The process of sending and receiving messages between people from different cultural backgrounds.