An Item That Is Considered Material Due to Its Magnitude

question 48

Multiple Choice

An item that is considered material due to its magnitude is referred to as being

• A) quantitatively material.
• B) of no interest to the auditor.
• C) qualitatively material.
• D) none of the above

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Definitions:

Ancillary Services

Supplementary services provided by companies that are not primary to their main business but enhance or support the overall consumer experience.

Ultimate Consumer

The ultimate consumer refers to the final buyer or user of a product or service who purchases it for personal, not business, use.

For-Profit Businesses

Businesses that are primarily focused on generating profits for their owners and shareholders.

Reseller Goods

Products that are bought and then sold by a business without any modification to the original product.