Question
With respect to the concept of materiality. which of the following statements is correct? a. Materiality depends only on the dollar amount of an item
With respect to the concept of materiality. which of the following statements is correct?
a. Materiality depends only on the dollar amount of an item relative to other items in the financial statements.
b. Materiality depends on the nature of a transaction rather than the dollar amount of the transaction.
c. Materiality is determined by reference to AICPA guidelines d Materiality is a matter of professional judgment.
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Auditing and Assurance Services
Authors: Timothy Louwers, Robert Ramsay, David Sinason, Jerry Straws
6th edition
978-1259197109, 77632281, 77862341, 1259197107, 9780077632281, 978-0077862343
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