The SEC Advisory Committee on Improvements in Financial Reporting identified each of the following as a view of equity and credit analysts about investor's views on materiality and financial statement restatements except for:
A) Bright line rules are useful in making materiality judgments
B) Bright line rules are not really useful in making materiality judgments
C) The disclosure provided on restatements is not adequate
D) One of the major costs of restatements is the amount of time between the restatement announcement and the final resolution of the restatement

Question

Quizplus · Accepted Answer

The SEC Advisory Committee noted that analysts generally do not find bright line rules useful in making materiality judgments, thus option A is the exception.

The SEC Advisory Committee on Improvements in Financial Reporting Identified