Item$7$

Time Remaining $50$ minutes $1$ second

$00$:$50$:$01$

Item $7$

Time Remaining $50$ minutes $1$ second

$00$:$50$:$01$

With respect to the concept of materiality, which of the following statements is correct?

Multiple Choice

Materiality depends only on the dollar amount of an item relative to other items in the financial statements.

Materiality is determined by reference to AICPA guidelines.

Materiality is a matter of professional judgment.

Materiality depends on the nature of a transaction rather than the dollar amount of the transaction.