Which of the following is least likely to be appropriate as the basis for determining the preliminary judgment about materiality in the audit of financial statements?
A) Owners' equity.
B) Current assets.
C) Net income before taxes.
D) Inventory.

Question

Quizplus · Accepted Answer

Inventory is a specific account and not a broad measure of financial performance or position, making it less appropriate for determining overall materiality.

Which of the Following Is Least Likely to Be Appropriate