An error is considered to be a material error if the error in the accounting information could have an impact on an investor's or creditor's decision.

Question

Quizplus · Accepted Answer

A material error in accounting is one that could influence the decision-making of users of the financial statements, such as investors or creditors, because it significantly misstates the financial position or results of operations of the business.

An Error Is Considered to Be a Material Error If