An intentional misstatement for an amount lower than both overall and performance materiality is still likely to be considered material.

Question

Quizplus · Accepted Answer

Materiality is a relative measure, and even misstatements below the overall and performance materiality thresholds may still impact the judgment of a reasonable user. Therefore, intentional misstatements for amounts lower than overall and performance materiality are still likely to be considered material.

An Intentional Misstatement for an Amount Lower Than Both Overall