Which of the following statements is not true regarding the use of a judgmental approach by auditors in determining whether a misstatement is clearly trivial?
A) The determination is based on past auditor experience.
B) The determination is usually not very defensible to third-party users.
C) The determination is usually not very defensible to regulators.
D) The determination uses percentages for the likelihood of misstatement.

Question

Quizplus · Accepted Answer

The determination of whether a misstatement is clearly trivial using a judgmental approach does not use percentages for the likelihood of misstatement. The other statements are true regarding the use of a judgmental approach.

Which of the Following Statements Is Not True Regarding the Use