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solong [7]
3 years ago
5

The U.S. Supreme Court defines materiality as "the magnitude of an omission or misstatement of accounting information that, in l

ight of surrounding circumstances, makes it probable that the judgment of a reasonable person relying on the information would have been changed or influenced by the omission or misstatement."
Social Studies
1 answer:
bagirrra123 [75]3 years ago
3 0

Answer: False

Explanation:

The U.S. Supreme Court doesn't defines materiality as "the magnitude of an omission or misstatement of accounting information that, in light of surrounding circumstances, makes it probable that the judgment of a reasonable person relying on the information would have been changed or influenced by the omission or misstatement." Instead, materiality is defined as “generally states that information is material if there is a substantial likelihood that the omitted or misstated item would have been viewed by a reasonable resource provider as having significantly altered the total mix of information,”

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