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:

Social Context

The sociocultural environment that surrounds individuals, influencing their behaviors, beliefs, and interactions.

Consciousness

The state of being aware of and able to think about oneself, one's surroundings, and one's relation to them, also encompassing notions of self-awareness and the awareness of social identities.

Sociology

The study of the development, structure, and functioning of human society.

Data Collected

Information gathered through observation, experimentation, surveys, or other methods for the purpose of analysis and understanding.