Misstatements that impact a user's decision-making process for a reason other than its magnitude constitute ________ materiality.
A)qualitative
B)quantitative
C)performance
D)All of these answer choices are correct

Question

Quizplus · Accepted Answer

Qualitative materiality refers to misstatements that may not have a significant financial impact but can still affect a user's decision-making process due to their nature, such as misstatements related to fraud or illegal activity. It is important for auditors to consider both quantitative and qualitative materiality when assessing the impact of misstatements.

Misstatements That Impact a User's Decision-Making Process for a Reason