The Test to Determine Whether Information Which Is Otherwise Relevant

question 30

Multiple Choice

The test to determine whether information which is otherwise relevant and faithfully represented, can be omitted, misstated or not disclosed separately without adversely affecting economic decision-making, is known as:

• A) understandability.
• B) materiality.
• C) consistency.
• D) comparability.

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Definitions:

Internal Auditors

Professionals within an organization tasked with evaluating and improving the effectiveness of governance, risk management, and control processes.

Top Executive

A highest-ranking manager or administrator in charge of overseeing the operations and strategic direction of a company or organization.

Weather Monitoring

The systematic process of observing and recording weather conditions in a given area, often using various meteorological instruments and techniques.

Cruise Ship

A large passenger ship used for pleasure voyages, where the voyage and the ship's amenities are part of the experience.