Which of the following are examples of qualitative considerations that may cause misstatements of quantitatively immaterial amounts to be considered material?
A) the client's compliance with contractual requirements of operating or other agreements
B) key ratios monitored by analysts or other key users of the financial statements
C) both a and b
D) none of the above

Question

Quizplus · Accepted Answer

Both A and B are examples of qualitative considerations that may cause misstatements of quantitatively immaterial amounts to be considered material. Client's compliance with contractual requirements or key ratios monitored by analysts may affect the decision-making process of various stakeholders and have material impacts on the overall perception of the financial statements. Therefore, these considerations should not be overlooked even if the amounts involved are not material.

Which of the Following Are Examples of Qualitative Considerations That