Which of the Following Statements About Materiality Is In

question 16

Multiple Choice

Which of the following statements about materiality is in?

• 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 report
• 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 report users

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Definitions:

Waived

Means voluntarily giving up a known right, claim, or privilege.

Right to Sue

The legal authority granted to an individual or entity to bring a lawsuit against another party.

Neutral Third Party

An unbiased individual or group engaged to mediate or arbitrate between conflicting parties.

Mediation

A form of alternative dispute resolution where a neutral third party, the mediator, helps disputing parties find a mutually satisfactory solution.