If $15,000 Is Considered to Be Material to the Income

question 67

Multiple Choice

If $15,000 is considered to be material to the income statement,but $25,000 is material to the balance sheet,the auditor should set overall materiality at which of the following dollar amounts?

• A)$20,000
• B)$25,000
• C)$40,000
• D)$15,000

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Definitions:

Seriously Injured

A condition where an individual has sustained severe harm or damage, often resulting in long-term health effects or impairment.

Assault

A threat of violence or injury to a person.

Battery

The unlawful touching or striking of another person.

Negligence

Failure to take proper care in doing something, leading to damage or injury to another.