Which of the following is correct in relation to materiality?

MCQ Practice

A matter is material only if it changes the audit report

A matter is material if the auditor and the directors both decide that further work needs to be done in the area under question

A matter is material only if it affects directors’ emoluments

A matter is material if its omission or misstatement would reasonably influence the decisions of an addressee of the auditors’ report

Correct Answer: D

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