1)Needles suggests that making judgments about what earnings management is becomes difficult because:

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6a)It depends on management's intentions

b)There is no clear limit beyond which a choice is clearly unethical

c)A perfectly routine accounting estimate may be illegal and unethical

d)All of the above

Which of the following is NOT a qualitative factor when assessing materiality?

a)The potential effect of the misstatement on trends, especially trends in profitability

b)The use of simplistic numerical thresholds and rules of thumb

c)The existence of statutory or regulator reporting requirements that affect materiality thresholds

d)A misstatement that changes a loss into income or vice versa