The primary concern in measuring materiality when a client has failed to follow an accounting standard is usually:
A) whether it can materially affect some future period.
B) the total dollar error in the accounts involved, compared with some base.
C) the nature of the item in error.
D) measurability of the dollar error.

Question

Quizplus · Accepted Answer

The primary concern in measuring materiality when a client has failed to follow an accounting standard is usually the total dollar error in the accounts involved, compared with some base. This approach helps auditors determine if the error is significant enough to affect the financial statements' overall fairness and accuracy.

The Primary Concern in Measuring Materiality When a Client Has