Madison Corporation has a few large accounts receivable that total $1,000,000. Nassau Corporation has a great number of small accounts receivable that also total $1,000,000. The importance of a misstatement in any one account is therefore greater for Madison than for Nassau. This is an example of the auditor's concept of

A. Materiality.
B. Comparative analysis.
C. Reasonable assurance.
D. Audit risk.

Ans: A. Materiality.

Business

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Your university is considering two projects to increase enrollment: offering traditional classes from midnight to 6 a.m. or offering house call classes where the professor would visit your home to provide instruction

Use a simple scoring model with at least three criteria to evaluate these two potential projects and indicate which project should be chosen.

Business

What method uses the insight that for each simulated realization there is an opposite and equally likely realization?

A) Stratified sampling B) Control variate C) Antithetic variate D) Efficient variate

Business