Which of the following are examplof qualitative considerations that may cause misstatements of quantitatively immaterial amounts to be considered material?
A) the client's compliance with contractual requirements of operating or other agreements
B) key ratios monitored by analysts or other key users of the financial statements
C) both a and b
D) none of the above

Question

Quizplus · Accepted Answer

Both A and B are qualitative considerations that may cause misstatements of quantitatively immaterial amounts to be considered material. Compliance with contractual requirements and key ratios monitored by analysts or other key users are important factors that can affect the decision of whether an amount is considered material.

Which of the Following Are Examplof Qualitative Considerations That May