Which of the following statements about materiality is not true?
A)Materiality is different for each company.
B)A material error would change the opinion of the average prudent investor.
C)Any error greater than $5,000 is considered material in a financial statement audit.
D)Material misstatements should not exist in order for a company to receive an unqualified audit opinion.

Question

Quizplus · Accepted Answer

Any error greater than $5,000 cannot be universally considered material as materiality is different for each company and depends on various factors such as the size and nature of the company, the economic environment, and the expectations of the users of financial statements. The other options, A, B, and D are true statements about materiality.

Which of the Following Statements About Materiality Is Not True