Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. materiality in auditing: materiality is a fundamen

Materiality in Auditing: Materiality is a fundamental concept in auditing that refers to the...

90.2K

Verified Solution

Question

Accounting

Materiality in Auditing:
Materiality is a fundamental concept in auditing that refers to the significance or importance of an item, transaction, or error in the financial statements. It is a matter of professional judgment for auditors to determine whether a particular misstatement, individually or collectively, could influence the economic decisions of users of the financial statements. Materiality depends on both the size and nature of the item or error, as well as its relevance to the financial statements as a whole.
Objective Type Question:
Which of the following best defines materiality in auditing?
A) The process of preparing financial statements
B) The significance or importance of an item in the financial statements
C) The final audit opinion rendered by auditors
D) The detailed testing of transactions conducted by auditors
Choose the correct option that defines materiality in auditing.
image

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

pathway from large intestine to hepatic vein to the liver to IVC to the heart to...

Medical Sciences
Q

a spherical shell of mass 2.0 kg rolls without slipping down a 38 degree slope A)...

Physics
Q

Decide on the procedure to solve the triangle given the following information, then solve the...

Basic Math
Q

table x y 0 1 1 3 2 9 3 27 4 64 5 125...

Algebra
Q

4 3 pt Determine the solution set for the quadratic inequality below x 6x 16...

Algebra
Q

Calculate the amount of the loss reported by Rooney Company from the sale of the...

Accounting
Q

Data concerning Runnells Corporation's single and sells a product. Data co cerning that product appear...

Accounting
Q

Prepare a yearly depreciation schedule showing the depreciation charge and book value at the end...

Accounting
Q

The cash balance in Wood, Inc.'s, April 30 general ledger is $47,000. The April bank...

Accounting
Q

Equipment costing $20,000 is purchased by paying $5,000 cash and signing a note payable for...

Accounting
Q

- Gurrant arter ) - Paramach Help Seven Saw Chapter 3 Graded Homework Check...

Accounting
Q

12. Nonannual compounding period The number of compounding periods in one year is called compounding...

Finance