Which of the following is not a consideration in determining a measure of materiality?
A)Strong internal control
B)Five percent of net income
C)Risks of material misstatements due to fraud
D)Risks of illegal acts

Question

Quizplus · Accepted Answer

Strong internal control is not a consideration in determining materiality. Materiality relates to the size and relevance of an error in financial statements, and is based on factors such as the magnitude of the potential misstatement and the impact it could have on users' decisions. Internal control, while important, is not directly relevant to determining materiality.

Which of the Following Is Not a Consideration in Determining