alleryStart learning →A small misstatement is below the money threshold, yet an omitted disclosure may still be material. Why?
AIt is material by nature
BIt is always trivial
CIt breaches a tax rule
DIt is below the limit
Answer & Solution
Correct answer: A. It is material by nature
Materiality has a qualitative aspect, so an item can matter because of what it is, not only its size.
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