An Item That Is Considered Material Due to Its Magnitude

question 48

Multiple Choice

An item that is considered material due to its magnitude is referred to as being

• A) quantitatively material.
• B) of no interest to the auditor.
• C) qualitatively material.
• D) none of the above

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Definitions:

Specially Manufacture

Refers to the creation or production of goods tailored to a specific buyer's requirements, often involving custom designs or specifications.

No Market

This term indicates a situation where there are no buyers willing to purchase something being offered for sale, often used in the context of stocks or other securities.

Insolvent

The financial state of being unable to pay debts when they are due.

Stop Delivery

A request made to halt the transportation or delivery of goods or mail.