Which of the following statements is not correct about materiality?

By: Answerout


Here is the solution for Which of the following statements is not correct about materiality?. The solution is given after the options.

Which of the following statements is not correct about materiality?

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.

An auditor considers materiality for planning purposes in terms of the largest aggregate level of misstatements that could be material to any one of the financial statements.

Materiality judgments are made in light of surrounding circumstances and necessarily involve both quantitative and qualitative judgments.

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.

Correct Answer

An auditor considers materiality for planning purposes in terms of the largest aggregate level of misstatements that could be material to any one of the financial statements.

Explanation:

An auditor considers materiality for planning purposes in terms of the largest aggregate level of misstatements that could be material to any one of the financial statements. is the answer for Which of the following statements is not correct about materiality?

Conclusion:

are provided by Answerout to teach the newcomers in the Digital Marketing Industry. The answers provided are 100% correct and are solved by Professionals. We don’t and never have recommended using these answers as a cheat sheet. We keep updating our answers as the Exam Change. You can also send us an Email or Comment to notify us of any support or Changes.

comments
leave comment