Which of the following statements is not correct?
A) Materiality is a relative rather than an absolute concept.
B) The most important base used as the criterion for deciding materiality is total assets.
C) Qualitative factors as well as quantitative factors affect materiality.
D) Given equal dollar amounts, frauds are usually considered more important than errors.

Question

Quizplus · Accepted Answer

Total assets is not the most important base used as the criterion for deciding materiality. Materiality can be assessed based on various factors such as net income, total revenue, and total equity, among others.

Which of the Following Statements Is Not Correct