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

Question

Quizplus · Accepted Answer

Both key ratios monitored by analysts and the client's compliance with contracts can have a significant impact on the overall perception and trustworthiness of a company's financial report, despite the specific amount in question being quantitatively immaterial. Therefore, both qualitative considerations could cause misstatements of even small amounts to be considered material.

Which of the Following Are Examples of Qualitative Considerations That