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The auditor can evaluate the materiality of a transaction or a balance with the "nature of the item" Please explain what is meant by the "nature of the item." using your own examples with 75 words.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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The auditor can evaluate the materiality of a transaction or a balance with the "nature of
the item"
Please explain what is meant by the "nature of the item." using your own examples with 75
words.

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