An example of qualitative materiality is:
A) an error involving an amount of great magnitude.
B) an error involving management oversight of small amounts.
C) a misstatement caused by management fraud.
D) All of the above.

Question

Quizplus · Accepted Answer

Qualitative materiality refers to the nature of the information or the error, rather than the size. A misstatement caused by management fraud is qualitative because it relates to the integrity and honesty of the management, regardless of the monetary value of the misstatement.

An Example of Qualitative Materiality Is