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:

Aversive Childhood Experiences

Stressful or traumatic events experienced during childhood, such as abuse or neglect, which can have long-term effects on health and wellbeing.

Middle Age

A period of human adulthood generally considered to range from around 45 to 65 years of age, often marked by increased focus on life reflection and planning for later years.

Glial Cells

Non-neuronal cells in the nervous system that provide support and protection for neurons.