Which of the Following Statements About Materiality Is Not True

question 65

Multiple Choice

Which of the following statements about materiality is not true?

• A)Materiality is different for each company.
• B)A material error would change the opinion of the average prudent investor.
• C)Any error greater than $5,000 is considered material in a financial audit.
• D)Material misstatements should not exist in order for a company to receive an unqualified audit opinion.

---

Definitions:

Locum Tenens

A person who temporarily fulfills the duties of another; specifically, a physician or clergyman acting temporarily for another.

Res Ipsa Loquitur

Latin, meaning “the thing speaks for itself,” which is also known as the doctrine of common knowledge.

Respondeat Superior

Latin, meaning “let the master answer,” a doctrine under which an employer is legally liable for the acts of his or her employees, if such acts were performed within the scope of the employee’s duties.

Duces Tecum

a court order that requires an individual to produce documents or records for a legal proceeding.