The five steps in applying materiality are listed below in random order
1. Estimate the combined misstatement.
2. Estimate the total misstatement in the segment.
3. Set materiality for the financial statements as a whole.
4. Determine performance materiality.
5. Compare combined estimate with preliminary judgment about materiality.
The first three steps in correct sequence would be
A) 1, 2, 5
B) 3, 4, 2
C) 2, 1, 5
D) 3, 2, 4
b
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The characteristics of home demand for a firm's products or services include all of the following except:
A) the composition of home demand. B) the size of the home demand. C) pattern of the growth of the home demand. D) means by which the home demand pushes or pulls foreign markets. E) the size of the competitors share of the home demand.
This federal act requires contractors with federal contracts worth over $2,000 to pay wages at least equal to those prevailing in the area where the work is being done
A) Fair Labor Standards Act B) Davis-Bacon Act C) Equal Pay Act D) Civil Rights Act of 1964