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Which of the Following Statements Is True Regarding Performance Materiality

Question 78

Multiple Choice

Which of the following statements is true regarding performance materiality in a monetary unit sampling application?


A) Performance materiality replaces the overall level of financial statement materiality.
B) Expected misstatement is the application of performance materiality to a particular sampling procedure.
C) Performance materiality addresses the risk that the aggregate of individually material misstatements may not cause the financial statements to be materially misstated.
D) Performance materiality provides auditors with a conservative measure that considers the presence of undetected misstatements.

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