For conditions involving a scope restriction the materiality of the restriction

For conditions involving a scope restriction the

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Terms: Materiality affect on audit reporting decisions Diff: Easy Objective: LO 3-6 AACSB: Reflective thinking skills 9) Materiality is essential when an auditor considers his/her determination of the appropriate report for a given set of circumstances. A Terms: Materiality; Appropriate report Diff: Easy Objective: LO 3-6 AACSB: Reflective thinking skills 10) A pervasive exception is one that affects different parts of the financial statements. A Terms: Pervasive exception Diff: Easy Objective: LO 3-6 AACSB: Reflective thinking skills 11) An item with a "psychic" effect (e.g., where the item maintains an increasing earnings trend) is a qualitative factor that may affect the auditors decision regarding materiality.
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B) False Answer: A Terms: Psychic effect; Materiality Diff: Challenging Objective: LO 3-6 AACSB: Reflective thinking skills
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