Which statement is true concerning materiality?

Which statement is true concerning materiality? 




A. Misstatements are material if they could reasonably be expected to influence the decisions of users of the financial statements.
B. Materiality guidelines are specifically prescribed by the PCAOB.
C. Materiality is not a useful concept in assessing internal control effectiveness.
D. Materiality is a concept applied to financial statement presentation but not to disclosures.







Answer: A


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