Which of the following statements is not correct about materiality?
A. Materiality is a relative concept
B. Materiality judgments involve both quantitative and qualitative judgments
C. Auditor’s consideration of materiality is influenced by the auditor’s perception of the needs of an informed decision-maker who will rely on the financial statements
D. At the planning state, the auditor considers materiality at the financial statement level only
Answer:A
Which of the following statements is not correct about materiality?
A. Materiality is a relative concept B. Materiality judgments involve both quantitative and qualitative judgments C. Auditor’s consideration of materiality is influenced by the auditor’s perception of the needs of an informed decision-maker who will rely on the financial statements D. At the planning state, the auditor considers materiality at the financial statement level only