Auditing standards define ________ as the magnitude of misstatements that individually, or when aggregated with other misstatements, could reasonably be expected to influence the economic decisions of users made on the basis of the financial statements.
A) fraud
B) inherent risk
C) materiality
D) significant

Question

Quizplus · Accepted Answer

Materiality is defined as the threshold above which misstatements in the financial statements are considered to be relevant or material to the decision-making needs of users. The other options (fraud, inherent risk, significant) are related to but not the same as materiality.

Auditing Standards Define ________ as the Magnitude of Misstatements That