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

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Definitions:

Democratic Vote Approach

A decision-making process in which all members have a vote, with the majority deciding the outcome.

Political System

The system of government by which a country or community is governed.

Checks And Balances

A system in which the different parts of an organization or government have powers that affect and control the other parts so that no part can become too powerful.

Thomas-Kilman Conflict Model

A model that outlines five conflict-handling modes to assess how individuals deal with conflicts: avoiding, accommodating, competing, compromising, and collaborating.