tors are, the lower the quantitative thresholds will be. Thus, an item with a zero amount can be material in light of qualitative thresholds. When making materiality judgments, an e
tors are, the lower the quantitative thresholds will be. Thus, an item with a zero amount can be material in light of qualitative thresholds. When making materiality judgments, an e
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
Chapter8: Specialized Audit Tools: Attributes Sampling, Monetary Unit Sampling, And Data Analytics Tools
Section: Chapter Questions
Problem 27CYBK
Related questions
Question
TRUE OR FALSE
- When making materiality judgments, a quantitative assessment alone is not always sufficient to conclude that an item of information is not material
- Materiality judgments apply only to items that are recognized - but not to those that are unrecognized
- The more significant the qualitative factors are, the lower the quantitative thresholds will be. Thus, an item with a zero amount can be material in light of qualitative thresholds.
- When making materiality judgments, an entity should judge an item’s materiality only on its own and not in combination with other information in the complete set of financial statements
- The Conceptual Framework and the Standards specify a uniform quantitative threshold for materiality
- To meet the objectives of general-purpose financial reporting, a Standard sometimes contains requirements that depart from the Conceptual Framework
- The Conceptual Framework is concerned with the provision of financial information to both external users and internal users
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