An internal auditor would most likely judge an error in an account balance to be material if the error involves:
A) A data input function.
B) A large percentage of net income.
C) An unverified routine transaction.
D) An unusual transaction for the company.

Question

Quizplus · Accepted Answer

An error is considered material if it significantly affects the financial statements, such as a large percentage of net income, which could mislead stakeholders.

An Internal Auditor Would Most Likely Judge an Error in an Account