Which of the Following Statements About Materiality Is Incorrect

question 45

Multiple Choice

Which of the following statements about materiality is incorrect?

• A) The preliminary assessment of materiality guides audit planning and testing.
• B) Materiality is used to guide the validity of information contained in the financial statements.
• C) Materiality is a key auditing concept that is assessed during the planning stage of every audit.
• D) Information is considered material if it has no impact on the decision-making process of financial statement users.

---

Definitions:

Manifestation

The demonstration or display of the existence or presence of something.

Culture

The shared values, beliefs, norms, and practices that shape the environment and behavior of individuals within an organization or society.

Problem-solving Teams

Groups formed within an organization to address specific issues or challenges, using collective knowledge and expertise to find effective solutions.

Specific Issues

Particular problems or challenges that arise in a context, requiring targeted strategies for resolution.