Which of the following is least likely to be considered material in an audit of a medium-sized organization?
A) A $1, 000 overstatement of the accrued-vacation payable account.
B) A violation of a government statute.
C) Fraud resulting in a cash loss to the organization.
D) An underpayment to the employee pension fund.

Question

Quizplus · Accepted Answer

A $1,000 overstatement of the accrued-vacation payable account is likely to be immaterial in the context of a medium-sized organization, as it is a relatively small amount that is unlikely to affect the financial statements significantly.

Which of the Following Is Least Likely to Be Considered