The SEC notes, with respect to materiality, that Group of answer choices Professional judgment should not be used in allocating the preliminary estimate to the accounts. Quantitative considerations are more important than qualitative issues when considering misstatements. Small misstatements, regardless of whether they are intentional or not, are considered immaterial. Auditors should consider both the individual and the aggregate impact of misstatements in determining if they are material.
The SEC notes, with respect to materiality, that Group of answer choices Professional judgment should not be used in allocating the preliminary estimate to the accounts. Quantitative considerations are more important than qualitative issues when considering misstatements. Small misstatements, regardless of whether they are intentional or not, are considered immaterial. Auditors should consider both the individual and the aggregate impact of misstatements in determining if they are material.
Auditing: A Risk Based-Approach (MindTap Course List)
11th Edition
ISBN:9781337619455
Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Publisher:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Chapter7: Planning The Audit: Identifying, Assessing, And Responding To The Risk Of Material Misstatement
Section: Chapter Questions
Problem 4RQSC
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Question
The SEC notes, with respect to materiality, that
Group of answer choices
Professional judgment should not be used in allocating the preliminary estimate to the accounts.
Quantitative considerations are more important than qualitative issues when considering misstatements.
Small misstatements, regardless of whether they are intentional or not, are considered immaterial.
Auditors should consider both the individual and the aggregate impact of misstatements in determining if they are material.
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