Materiality - CPA Auditing and Attestation (AUD)
Card 1 of 24
Judgments about materiality are:
Judgments about materiality are:
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The definition of materiality is one that will influence the decision of the reader. Therefore, the size and nature of the decision will impact materiality
The definition of materiality is one that will influence the decision of the reader. Therefore, the size and nature of the decision will impact materiality
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In terms of materiality
In terms of materiality
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The auditor's judgment determines the materiality level that the auditor is willing to accept.
The auditor's judgment determines the materiality level that the auditor is willing to accept.
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In planning the audit, materiality provides a basis for:
In planning the audit, materiality provides a basis for:
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Materiality is the basis for determining the nature and extent of risk. This is examined during the planning stages. The sample size and testing are developed based on the level of materiality.
Materiality is the basis for determining the nature and extent of risk. This is examined during the planning stages. The sample size and testing are developed based on the level of materiality.
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If new info becomes available that could require a reevaluation of the quantitative level of materiality applied during an audit of an issuer, then the auditor should:
If new info becomes available that could require a reevaluation of the quantitative level of materiality applied during an audit of an issuer, then the auditor should:
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If new information becomes available that could require a reevaluation of the quantitative level of materiality applied during an audit of an issuer, then the auditor should raise or lower the materiality level as appropriate to the situation.
If new information becomes available that could require a reevaluation of the quantitative level of materiality applied during an audit of an issuer, then the auditor should raise or lower the materiality level as appropriate to the situation.
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Of the following, which best describes the concept of materiality?
Of the following, which best describes the concept of materiality?
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According to the US Supreme Court, information is material if there is a substantial likelihood that the information would be viewed by a reasonable investor as having significantly altered the total mix of available information.
According to the US Supreme Court, information is material if there is a substantial likelihood that the information would be viewed by a reasonable investor as having significantly altered the total mix of available information.
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Of the following, which benchmark would be utilized when considering the materiality of a single cash transaction?
Of the following, which benchmark would be utilized when considering the materiality of a single cash transaction?
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All of the answer choices are different thresholds, determined by experienced auditors. Analyzing a single transaction compared to a whole balance sheet account should use proper benchmarks.
All of the answer choices are different thresholds, determined by experienced auditors. Analyzing a single transaction compared to a whole balance sheet account should use proper benchmarks.
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Judgments about materiality are:
Judgments about materiality are:
Tap to reveal answer
The definition of materiality is one that will influence the decision of the reader. Therefore, the size and nature of the decision will impact materiality
The definition of materiality is one that will influence the decision of the reader. Therefore, the size and nature of the decision will impact materiality
← Didn't Know|Knew It →
In terms of materiality
In terms of materiality
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The auditor's judgment determines the materiality level that the auditor is willing to accept.
The auditor's judgment determines the materiality level that the auditor is willing to accept.
← Didn't Know|Knew It →
In planning the audit, materiality provides a basis for:
In planning the audit, materiality provides a basis for:
Tap to reveal answer
Materiality is the basis for determining the nature and extent of risk. This is examined during the planning stages. The sample size and testing are developed based on the level of materiality.
Materiality is the basis for determining the nature and extent of risk. This is examined during the planning stages. The sample size and testing are developed based on the level of materiality.
← Didn't Know|Knew It →
If new info becomes available that could require a reevaluation of the quantitative level of materiality applied during an audit of an issuer, then the auditor should:
If new info becomes available that could require a reevaluation of the quantitative level of materiality applied during an audit of an issuer, then the auditor should:
Tap to reveal answer
If new information becomes available that could require a reevaluation of the quantitative level of materiality applied during an audit of an issuer, then the auditor should raise or lower the materiality level as appropriate to the situation.
If new information becomes available that could require a reevaluation of the quantitative level of materiality applied during an audit of an issuer, then the auditor should raise or lower the materiality level as appropriate to the situation.
← Didn't Know|Knew It →
Of the following, which best describes the concept of materiality?
Of the following, which best describes the concept of materiality?
Tap to reveal answer
According to the US Supreme Court, information is material if there is a substantial likelihood that the information would be viewed by a reasonable investor as having significantly altered the total mix of available information.
According to the US Supreme Court, information is material if there is a substantial likelihood that the information would be viewed by a reasonable investor as having significantly altered the total mix of available information.
← Didn't Know|Knew It →
Of the following, which benchmark would be utilized when considering the materiality of a single cash transaction?
Of the following, which benchmark would be utilized when considering the materiality of a single cash transaction?
Tap to reveal answer
All of the answer choices are different thresholds, determined by experienced auditors. Analyzing a single transaction compared to a whole balance sheet account should use proper benchmarks.
All of the answer choices are different thresholds, determined by experienced auditors. Analyzing a single transaction compared to a whole balance sheet account should use proper benchmarks.
← Didn't Know|Knew It →
Judgments about materiality are:
Judgments about materiality are:
Tap to reveal answer
The definition of materiality is one that will influence the decision of the reader. Therefore, the size and nature of the decision will impact materiality
The definition of materiality is one that will influence the decision of the reader. Therefore, the size and nature of the decision will impact materiality
← Didn't Know|Knew It →
In terms of materiality
In terms of materiality
Tap to reveal answer
The auditor's judgment determines the materiality level that the auditor is willing to accept.
The auditor's judgment determines the materiality level that the auditor is willing to accept.
← Didn't Know|Knew It →
In planning the audit, materiality provides a basis for:
In planning the audit, materiality provides a basis for:
Tap to reveal answer
Materiality is the basis for determining the nature and extent of risk. This is examined during the planning stages. The sample size and testing are developed based on the level of materiality.
Materiality is the basis for determining the nature and extent of risk. This is examined during the planning stages. The sample size and testing are developed based on the level of materiality.
← Didn't Know|Knew It →
If new info becomes available that could require a reevaluation of the quantitative level of materiality applied during an audit of an issuer, then the auditor should:
If new info becomes available that could require a reevaluation of the quantitative level of materiality applied during an audit of an issuer, then the auditor should:
Tap to reveal answer
If new information becomes available that could require a reevaluation of the quantitative level of materiality applied during an audit of an issuer, then the auditor should raise or lower the materiality level as appropriate to the situation.
If new information becomes available that could require a reevaluation of the quantitative level of materiality applied during an audit of an issuer, then the auditor should raise or lower the materiality level as appropriate to the situation.
← Didn't Know|Knew It →
Of the following, which best describes the concept of materiality?
Of the following, which best describes the concept of materiality?
Tap to reveal answer
According to the US Supreme Court, information is material if there is a substantial likelihood that the information would be viewed by a reasonable investor as having significantly altered the total mix of available information.
According to the US Supreme Court, information is material if there is a substantial likelihood that the information would be viewed by a reasonable investor as having significantly altered the total mix of available information.
← Didn't Know|Knew It →
Of the following, which benchmark would be utilized when considering the materiality of a single cash transaction?
Of the following, which benchmark would be utilized when considering the materiality of a single cash transaction?
Tap to reveal answer
All of the answer choices are different thresholds, determined by experienced auditors. Analyzing a single transaction compared to a whole balance sheet account should use proper benchmarks.
All of the answer choices are different thresholds, determined by experienced auditors. Analyzing a single transaction compared to a whole balance sheet account should use proper benchmarks.
← Didn't Know|Knew It →
Judgments about materiality are:
Judgments about materiality are:
Tap to reveal answer
The definition of materiality is one that will influence the decision of the reader. Therefore, the size and nature of the decision will impact materiality
The definition of materiality is one that will influence the decision of the reader. Therefore, the size and nature of the decision will impact materiality
← Didn't Know|Knew It →
In terms of materiality
In terms of materiality
Tap to reveal answer
The auditor's judgment determines the materiality level that the auditor is willing to accept.
The auditor's judgment determines the materiality level that the auditor is willing to accept.
← Didn't Know|Knew It →