Which of the following statements about materiality is considered true? a. Materiality is judged by the auditor using his professional knowledge and experience since materiality of an item varies with circumstances. b. Materiality could never influence the economic decisions of users taken on the basis of the financial information. c. The auditor should consider materiality but not its relationship with audit risk when conducting an audit. d. The size and nature of the item will not determine its materiality.
Which of the following statements about materiality is considered true? a. Materiality is judged by the auditor using his professional knowledge and experience since materiality of an item varies with circumstances. b. Materiality could never influence the economic decisions of users taken on the basis of the financial information. c. The auditor should consider materiality but not its relationship with audit risk when conducting an audit. d. The size and nature of the item will not determine its materiality.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Which of the following statements about materiality is considered true?
a.
Materiality is judged by the auditor using his professional knowledge and experience since materiality of an item varies with circumstances.
b.
Materiality could never influence the economic decisions of users taken on the basis of the financial information.
c.
The auditor should consider materiality but not its relationship with audit risk when conducting an audit.
d.
The size and nature of the item will not determine its materiality.
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