# Which of the following is correct in relation to materiality? with Answer - Auditing Mcqs | TestPrep

> Solved MCQ: Which of the following is correct in relation to materiality? Correct Answer: D. A matter is material if its omission or misstatement would reasonably influence the decisions of an addressee of the auditors’ report. Verified answer explanation for FPSC, PPSC, MDCAT, NTS, and CSS competitive exam preparation.

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# Which of the following is correct in relation to materiality?

Direct Answer & Quick Reference

The correct option is **D. A matter is material if its omission or misstatement would reasonably influence the decisions of an addressee of the auditors’ report**.

A. A matter is material only if it changes the audit report

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

C. A matter is material only if it affects directors’ emoluments

D. A matter is material if its omission or misstatement would reasonably influence the decisions of an addressee of the auditors’ report **(Correct Answer)**

✨ Explain with AI

Verified Key: D. A matter is material if its omission or misstatement would reasonably influence the decisions of an addressee of the auditors’ report
Solved by 2,228+ students

Verified against official examination board answer keys and standard curriculum textbooks.

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*Source: https://test-prep.blog/mcq/which-of-the-following-is-correct-in-relation-to-materiality-d4cf1638-f766-4df4-ae4b-6e5427be0a4d*
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