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Company A has a few large accounts receivable that total $1,000,000. Company B has a large number of accounts receivable that also total $1,000,000. The

Company A has a few large accounts receivable that total $1,000,000. Company B has a large number of accounts receivable that also total $1,000,000. The effect of a 10% misstatement in any one individual account is, therefore, greater for Company A than for Company B. This is an example of the auditors concept of:

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Objectivity

Control risk

Materiality

Reasonable assurance

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