Information is considered material if:     it would have a bearing on decisions of those who use the financial statements.     there is a substantial likelihood that a reasonable investor would not be concerned about the information.     an item is so insignificant that users would likely ignore it.     the FASB explicitly rules the transaction or item to be material.

Q: True or false, the individual posting account balance right offs should be given complete authority…

A: The write-off refers to the amount that is deducted from the receivables balance because this is the…

Q: What factors should the auditor take into consideration before concluding that a financial statement…

A: Financial statements should give crucial information to any interested user of financial data so…

Q: what is the Judgement Traps in accounting?

A: Judgment trap is also known as judgment triggers which refers to the inherited issue that leads…

Q: Which of the following services provides the lowest level of assurance on a financial statement…

A: An assurance on financial statements refers to the confidence of the user in the financial statement…

Q: A misstatement in the financial statements can be considered material if knowledge of…

A: We have the following question: A misstatement in the financial statements can be considered…

Q: In IFRS, the conceptual framework indicates appropriate accounting when a more specific accounting…

A: The International Financial Reporting Standards (IFRS) constitute a globally consistent,…

Q: TRUE or FALSE Accounting records and statements are based on the most reliable data available so…

A: The objectivity principle states that accounting records should be free from personal opinions.  All…

Q: Which of the following statements about the IASB and FASB conceptual frameworks is not correct? a.…

A: The FASB and IASB have the goal of establishing the accounting standards. FASB focuses on accounting…

Q: If a lawyer refuses to furnish corroborating information regarding litigation, claims, and…

A: The correct answer is: (C) consider the refusal to be a scope limitation. The auditor would…

Q: When a person claims to have been deceived into signing a negotiable instrument by being told it is…

A: Deception on the signing of a negotiable instrument refers to a situation where a person…

Q: Does a qualified opinion on management’s assessment of internal controls over the financial…

A:

Q: The primary qualities that make accounting information useful for decision-making are :(a) Relevance…

A: Accounting information: Accounting information refers to the data or the information about the…

Q: Financial accounting examines monetary and non-monetary events. Select one: True False

A: Financial accounting : Financial Accounting is the process of recording,summerizing and reporting a…

Q: Comment on the statement that materiality is in the eye of the beholder. How does this statement…

A: In accounting, materiality relates to the significance of any transaction or accounts. It is one of…

Q: Identify the three alternative opinions that may be appropriatewhen the client’s financial…

A: Following are the three alternative opinions that may be appropriate when the client’s financial…

Fraud

Fraud in accounting is the planned manipulation of financial documents to make a false appearance of corporate financial health. Moreover, it includes an employee, accountant, or the company itself misleading investors and shareholders.