Multiple Choice
Which of the following is not a qualitative factor that may affect an auditor's establishment of materiality?
A) Potential for fraud.
B) The entity is close to violating loan covenants.
C) Firm policy sets materiality at five per cent of pre-tax income.
D) A small misstatement would interrupt an earnings trend.
Correct Answer:
Verified
Correct Answer:
Verified
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