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Auditing and Assurance Services 9th Edition by Alvin Arens,Mark Beasley,Randy Elder
Edition 9ISBN: 978-0130459206Auditing and Assurance Services 9th Edition by Alvin Arens,Mark Beasley,Randy Elder
Edition 9ISBN: 978-0130459206 Exercise 33
Which of the following is not a qualitative factor that may affect an auditor's establishment of materiality?
A) Potential for fraud.
B) The company is close to violating loan covenants.
C) Firm policy sets materiality at 4 percent of pretax income.
D) A small misstatement would interrupt an earnings trend.
A) Potential for fraud.
B) The company is close to violating loan covenants.
C) Firm policy sets materiality at 4 percent of pretax income.
D) A small misstatement would interrupt an earnings trend.
Explanation
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Materiality refers to the level of misst...
Auditing and Assurance Services 9th Edition by Alvin Arens,Mark Beasley,Randy Elder
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