The Determination of Materiality Is Based on

question 74

Multiple Choice

The determination of materiality is based on

• A)generally accepted auditing standards
• B)the likelihood of material misstatements being present
• C)the professional judgment of the auditor
• D)the understanding of the entity's internal controls

---

Definitions:

Preemptive Right

A shareholder's right to buy new shares in a company before they are offered to the public, to maintain their proportionate ownership in the company.

Preemptive Right

The right granted to existing shareholders to purchase additional shares before the company offers them to the public, to maintain their proportional ownership.