Which of the following is taken into account while determining the materiality of an amount?

Size of the amount as well as organisation

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Cumulative effect of all immaterial amounts

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Nature of the amount in question

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All of the above

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Solution

The correct option is D
All of the above

All of the above are important factors while determining the materiality levels for any company because materiality can be different for different organisations. A particular amount which may be material for one organisation may be completely immaterial for the other organisation.

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