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Simora [160]
3 years ago
15

Which of the following is an example of a qualitative materiality factor? The client installed a new security system to protect

the building. The client is experiencing a slowdown in sales and is struggling to pay vendors on time. Inventory represents 40% of current assets. Total salaries expense is greater than 5% of income before taxes.
Business
1 answer:
ycow [4]3 years ago
3 0

Answer:

A. The client installed a new security system to protect the building

Explanation:

The client is experiencing slow down in sales is an example of qualitative materiality factor as it can lead to misstatement. Sales turnover and payment, Percentage (%) of expenses to income and Percentage (%) of inventory to assets are all example of quantitative materiality factor. Whereas installation of new security system is not material which could lead to misstatement.

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C

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