Which of the Following Statements About the Materiality Concept Is

question 34

Multiple Choice

Which of the following statements about the materiality concept is not true?

• A)Materiality is different for each company.
• B)A material error would change the opinion of the average prudent investor.
• C)Any error greater than $5,000 is considered material in a financial statement audit.
• D)Material misstatements should not exist in order for a company to receive an unqualified audit opinion.

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Definitions:

Normal Time

The time typically required to accomplish a task under normal working conditions, factored into planning and scheduling processes.

Labour Standards

Labour standards are regulations and guidelines designed to ensure safe, fair, and humane working conditions for employees.

Fair Day's Work

An ethical and practical concept suggesting a reasonable amount of work that should be expected from an employee in a day.

Visual Workplace

A work environment where information about processes and operations is made visible through signs, labels, and visual cues to enhance efficiency and safety.