Information is considered qualitatively material if it _______.
A)affects a user's decision-making process for a reason other than its magnitude
B)exceeds the dollar magnitude of an auditor's planning materiality assessment
C)can be presented as a percentage of net income
D)includes liquidity ratios of interest to bond holders

Question

Quizplus · Accepted Answer

Materiality is not just about its quantitative aspect, but also about its qualitative aspect. A piece of information may not have a large dollar amount, but if it affects a user's decision-making process for a reason other than its magnitude, such as legal or reputational consequences, then the information is considered qualitatively material.

Information Is Considered Qualitatively Material If It _______