Which of the following statements is not correct about materiality?
A. Materiality judgments are made in light of surrounding circumstances and necessarily involve both quantitative and qualitative judgments.
B. An auditor considers materiality for the aggregate level of misstatements that could be material to any one of the financial statements individually.
C. The concept of materiality recognizes that some matters are important for fair presentation of financial statements in conformity with GAAP, while other matters are not important.
D. An auditor's consideration of materiality is influenced by the auditor's perception of the needs of a reasonable person who will rely on the financial statements.
Answer: B
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Grass Green Company makes and sells hedge trimmers, which are designed to be safe if used properly. Hazel buys a Grass Green trimmer and lends it to her neighbor Izak. In his garage, Izak is using the trimmer as a prod to dislodge a box from a high
shelf when the trimmer suddenly engages. Startled, Izak drops the trimmer, which swings around and cuts his leg. Izak files a product liability suit against Grass Green, on the ground of negligence. On what basis could the manufacturer prevail?
Yard Whimzees, a Statesboro, Georgia sign business, began by making wooden signs for residential use to announce births, anniversaries and such. They then turned to the business market making signs for businesses. Creating signs for a new market is an implementation of a _____ strategy.
A. market development B. market penetration C. product penetration D. product development E. diversification
Answer the following statements true (T) or false (F)
1. A sole proprietor is required to use the same reporting period for both business and individual tax information. 2. S corporations are flow-through entities in which S income is allocated to shareholders. 3. S corporations must allocate income to shareholders based on their proportionate stock ownership. 4. The check-the-box regulations permit an LLC to be taxed as a C corporation.
Round the number to the indicated place: 18,796,538 to ten millions