An item that is considered material due to its magnitude is referred to as being:
A)Of no interest to the auditor.
B)Quantitatively material.
C)Qualitatively material.
D)None of the above.

Question

Quizplus · Accepted Answer

A material item is one that, if omitted or misstated, could influence the decisions of users based on the financial statements. Quantitative materiality refers to the size or magnitude of an item, and is a primary consideration in determining whether an item is material or not.

An Item That Is Considered Material Due to Its Magnitude