When Information Exceeds an Auditor's Preliminary Materiality Assessment, It Is

question 7

Multiple Choice

When information exceeds an auditor's preliminary materiality assessment, it is deemed to be

• A) performance materiality.
• B) specific materiality.
• C) quantitatively material.
• D) none of the above

---

Definitions:

Law of Diminishing Marginal Returns

A rule of economics that asserts when a single production element is expanded and the rest stay unchanged, there will ultimately be a decline in total output after reaching a specific threshold.

Cost Curves

Graphical representations in economics that show how the costs of production vary with different levels of output.

Marginal Product

The additional output that can be produced by adding one more unit of a specific input, holding all other inputs constant.