The concept of materiality refers to:
A)Any misstatement in the financial statements.
B)The overall degree of risk in an organization.
C)An amount of misstatement that could lead someone to make a poor decision and suffer a loss.
D)An amount of risk in an organization sufficient to offset the expected returns of any investment in the company.

Question

Quizplus · Accepted Answer

Materiality refers to the significance of an amount, transaction, or discrepancy that could influence the economic decisions of users taken on the basis of the financial statements.

The Concept of Materiality Refers To