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 5 per cent of pre-tax income.
D) A small misstatement that would interrupt an earnings trend.
Correct Answer:
Verified
Correct Answer:
Verified
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