Misclassification of revenue expenditure resulting in a saving in a grant when in fact there has been an excess is an example of.
A)Materiality by value
B)Materiality by context
C)Materiality by nature
D)All of the above

Question

Quizplus · Accepted Answer

Misclassification of revenue expenditure in this context affects the understanding of the financial position and performance, making it material by context rather than by value or nature. It's the significance of the misclassification in its context, particularly in relation to the grant, that makes it material.

Misclassification of Revenue Expenditure Resulting in a Saving in a Grant