Accounting · Auditing

Which of the following best explains the concept of 'Materiality' in auditing?

Verified Solution4 OptionsUpdated: October 2026👁️1 View

1Materiality depends solely on the turnover of the company
2An omission or misstatement is material if it could influence the economic decisions of users✓
3Only frauds are considered material
4Every error, regardless of size, must be reported

Correct answer

An omission or misstatement is material if it could influence the economic decisions of users

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