Which of the following is not relevant when determining the materiality of an item?

Question

Quizplus · Accepted Answer

Materiality in accounting and auditing is concerned with the importance or significance of an amount, transaction, or discrepancy. The size of the item, the transaction that gave rise to the item, and the sensitivity and legal nature of the item are all relevant factors in determining materiality. The "prudent treatment of the item" is not a standard criterion for assessing materiality; rather, materiality judgments are based on whether the size, nature, or circumstances of the item could influence the economic decisions of users of financial statements.

Which of the Following Is Not Relevant When Determining the Materiality