The concept ofmateriality is where small transaction or amount matters that can change the decision of the users. Materiality misstatement concept includes omissions that are considered as material. They effect the financial decisions of the users. To Select: State whether the given condition is true or false.

Question

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Answer 1

Question

Chapter 7, Problem 1TFQ

To determine

Introduction: The concept ofmateriality is where small transaction or amount matters that can change the decision of the users. Materiality misstatement concept includes omissions that are considered as material. They effect the financial decisions of the users.

To Select: State whether the given condition is true or false.

Expert Solution & Answer

Answer to Problem 1TFQ

The given statement isfalse.

Explanation of Solution

The given statement states that the auditor bases materiality solely on quantitative factors but this is not true as auditor focuses onboth the factors for materiality such as quantitative and qualitative. Identification and material misstatements assess the standard that is requiredby the auditor in the financial statements through understanding the client’s environment, related areas, and internal control.

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Answer 2

Question

Chapter 7, Problem 1TFQ

To determine

Introduction: The concept ofmateriality is where small transaction or amount matters that can change the decision of the users. Materiality misstatement concept includes omissions that are considered as material. They effect the financial decisions of the users.

To Select: State whether the given condition is true or false.

Expert Solution & Answer

Answer to Problem 1TFQ

The given statement isfalse.

Explanation of Solution

The given statement states that the auditor bases materiality solely on quantitative factors but this is not true as auditor focuses onboth the factors for materiality such as quantitative and qualitative. Identification and material misstatements assess the standard that is requiredby the auditor in the financial statements through understanding the client’s environment, related areas, and internal control.

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Answer 3

Question

Chapter 7, Problem 1TFQ

To determine

Introduction: The concept ofmateriality is where small transaction or amount matters that can change the decision of the users. Materiality misstatement concept includes omissions that are considered as material. They effect the financial decisions of the users.

To Select: State whether the given condition is true or false.

Expert Solution & Answer

Answer to Problem 1TFQ

The given statement isfalse.

Explanation of Solution

The given statement states that the auditor bases materiality solely on quantitative factors but this is not true as auditor focuses onboth the factors for materiality such as quantitative and qualitative. Identification and material misstatements assess the standard that is requiredby the auditor in the financial statements through understanding the client’s environment, related areas, and internal control.

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Answer 4

Question

Chapter 7, Problem 1TFQ

To determine

Introduction: The concept ofmateriality is where small transaction or amount matters that can change the decision of the users. Materiality misstatement concept includes omissions that are considered as material. They effect the financial decisions of the users.

To Select: State whether the given condition is true or false.

Expert Solution & Answer

Answer to Problem 1TFQ

The given statement isfalse.

Explanation of Solution

The given statement states that the auditor bases materiality solely on quantitative factors but this is not true as auditor focuses onboth the factors for materiality such as quantitative and qualitative. Identification and material misstatements assess the standard that is requiredby the auditor in the financial statements through understanding the client’s environment, related areas, and internal control.

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Answer 5

Chapter 7, Problem 1TFQ

To determine

Introduction: The concept ofmateriality is where small transaction or amount matters that can change the decision of the users. Materiality misstatement concept includes omissions that are considered as material. They effect the financial decisions of the users.

To Select: State whether the given condition is true or false.

Expert Solution & Answer

Answer to Problem 1TFQ

The given statement isfalse.

Explanation of Solution

The given statement states that the auditor bases materiality solely on quantitative factors but this is not true as auditor focuses onboth the factors for materiality such as quantitative and qualitative. Identification and material misstatements assess the standard that is requiredby the auditor in the financial statements through understanding the client’s environment, related areas, and internal control.

Answer 6

Chapter 7, Problem 1TFQ

To determine

Introduction: The concept ofmateriality is where small transaction or amount matters that can change the decision of the users. Materiality misstatement concept includes omissions that are considered as material. They effect the financial decisions of the users.

To Select: State whether the given condition is true or false.

Expert Solution & Answer

Answer to Problem 1TFQ

The given statement isfalse.

Explanation of Solution

The given statement states that the auditor bases materiality solely on quantitative factors but this is not true as auditor focuses onboth the factors for materiality such as quantitative and qualitative. Identification and material misstatements assess the standard that is requiredby the auditor in the financial statements through understanding the client’s environment, related areas, and internal control.

Answer 7

Chapter 7, Problem 1TFQ

To determine

Introduction: The concept ofmateriality is where small transaction or amount matters that can change the decision of the users. Materiality misstatement concept includes omissions that are considered as material. They effect the financial decisions of the users.

To Select: State whether the given condition is true or false.

Answer 8

Expert Solution & Answer

Answer to Problem 1TFQ

The given statement isfalse.

Answer 9

Expert Solution & Answer

Answer 10

Expert Solution & Answer

Answer 11

Explanation of Solution

The given statement states that the auditor bases materiality solely on quantitative factors but this is not true as auditor focuses onboth the factors for materiality such as quantitative and qualitative. Identification and material misstatements assess the standard that is requiredby the auditor in the financial statements through understanding the client’s environment, related areas, and internal control.

Concept explainers

Answer to Problem 1TFQ

Explanation of Solution

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