Which of the Following Is Not True About Materiality Judgment

question 38

Multiple Choice

Which of the following is not true about materiality judgment?

• A)The auditor's consideration of materiality is influenced by the auditor's perception of the needs of users of financial statements.
• B)The auditor considers materiality only in relation to classes of transactions,account balances,and disclosures.
• C)Materiality judgments make sure that the auditor gathers sufficient evidential matter to obtain reasonable assurance about whether the financial statements are free of material misstatement.
• D)Materiality decisions differ from one audit client to another.

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Definitions:

Environmental Forces

External factors such as economic, political, social, technological, and legal conditions that influence an organization's operations and outcomes.

Learned Behavior

Behaviors or actions that are acquired or modified over time in response to the surrounding environment.

Psychology

The scientific study of the human mind and its functions, especially those affecting behavior in a given context, exploring aspects such as perception, cognition, emotion, and interpersonal relationships.

Interdisciplinary Influences

The impact of integrating and applying knowledge and methods from multiple disciplines to advance understanding or solve problems.