This question is subjective.Which of the following statements might be most appropriate in terms of providing guidance on determining a materiality level?
A)If the amount is equal or greater than 10% of the appropriate base amount, the item is material.
B)If the amount is equal or greater than 10% of the appropriate base amount, the item is immaterial.
C)If the amount is equal or less than 5% of the appropriate base amount, the item is material
D)If the amount is equal or greater than 10% of the appropriate base amount, the item is material; if the amount is equal or less than 5% of the appropriate base amount, the item is immaterial.

Question

Quizplus · Accepted Answer

Statement D provides a balanced approach by suggesting a threshold for both materiality and immateriality, which is commonly used in practice to guide materiality assessments.

This Question Is Subjective