Information which by its omission, misstatement or non-disclosure has the potential to influence economic decision-making is regarded as:
A) objective.
B) reliable.
C) true and fair.
D) material.

Question

Quizplus · Accepted Answer

Materiality refers to information that could affect economic decisions if it were not disclosed or reported accurately. It is a key concept in financial reporting and auditing and is critical to the accuracy and completeness of financial statements. Material information must be disclosed to ensure that users of financial statements have all the information they need to make informed decisions.

Information Which by Its Omission, Misstatement or Non-Disclosure Has the Potential