Chapter 9

Multiple-Choice Questions

|1. |If it is probable that the judgment of a reasonable person would have been changed or influenced by the omission or misstatement of information, then|
| |that information is, by definition of FASB Statement No. 2: |
| |a. material. |
| |b. insignificant. |
| |c. significant. |
| |d. relevant. |
| | |
|2. |The preliminary judgment about materiality is the amount by which the auditor believes the statements could be misstated and |
| |still not affect the decisions of reasonable users. |
| |a. minimum |
| |b. maximum |
| |c. mean average