In Allocating Financial Statement Materiality to the Various Accounts, the Auditor

Multiple Choice

In allocating financial statement materiality to the various accounts, the auditor should consider:

A) the likelihood of misstatements in the account.
B) the probable cost of verifying the account.
C) neither the likelihood of misstatements in the account nor the probable cost of verifying the account.
D) both the likelihood of misstatements in the account and the probable cost of verifying the account.
E) the likelihood of misstatements in a transaction.