An error or omission is considered to be material if:
A) The act was intentional.
B) The results would have affected the judgment of a reasonable user.
C) The act was unintentional.
D) The omission was more than $100,000.

Question

Quizplus · Accepted Answer

Materiality is determined based on whether reasonable users would consider the error or omission to be important in their decision-making. The intention behind the act is not relevant to materiality, but rather the impact it has on a reasonable user's judgment. The monetary amount is also not a determining factor in materiality.

An Error or Omission Is Considered to Be Material If