Why must an auditor assess materiality?
What will be an ideal response?
An auditor must assess materiality because to find all misstatements would not be cost-efficient, or even feasible. To search for all misstatements, the auditor would need to examine every transaction. In addition, relatively minor misstatements may not matter to users. For this reason, when planning and performing an audit the auditor focuses on misstatements that would affect the users' decisions (i.e., material misstatements).
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I am able to identify task and relationship types of behaviors in my leader. I am applying the main focus of which leadership approach?
A. behavioral B. skills C. trait D. path-goal Ans: A
A retailer can protect itself from a potentially poor location and most effectively ensure itself of long tenancy through what type of lease/ownership arrangement?
a. a short-term lease (5 years) with three renewal option periods of 7 years each b. a long lease of 21 years c. ownership of the retail property d. a sale-leaseback for 10 years
The ________ test is used by most courts to determine legal insanity as it relates to contractual
capacity. A) Irresistible impulse B) Right or wrong C) Objective cognitive understanding D) Reasonable person