Which of the Following Is the Most Important Qualitative Factor

Multiple Choice

Which of the following is the most important qualitative factor that auditors should consider when making materiality judgments?

A) A misstatement exceeded five percent of net income.
B) The auditor also provides consulting services to the audit client.
C) The misstatement will cause the client to fail to meet an earnings forecast.
D) The audit committee is not well-educated about the accounting principle in question.