Q. Which of the following statements is not correct about materiality?
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(A)
Materiality is a relative concept
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(B)
Materiality judgments involve both quantitative and qualitative judgments
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(C)
Auditor’s consideration of materiality is influenced by the auditor’s perception of the needs of an informed decision maker who will rely on the financial statements
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(D)
At the planning state, the auditor considers materiality at the financial statement level only
✅ Correct Answer: (D)
At the planning state, the auditor considers materiality at the financial statement level only