Particular materiality is more than the general materiality.Group of answer choicesTrueFalse

The statement is typically true.

Explanation:

• Materiality in Auditing: Materiality refers to the significance of an amount, transaction, or discrepancy that affects the decision-making of users of financial statements.

• General vs. Particular Materiality:

  • General Materiality sets a threshold for misstatements that might influence the overall financial statements.
  • Particular Materiality considers specific circumstances of certain transactions or accounts that might be more relevant based on risk assessments or specific user needs.

In most cases, particular materiality is indeed set higher than general materiality since it accounts for additional specific factors that could affect the financial decision of stakeholders. Therefore, the understanding here is that particular materiality focuses on specific instances rather than a broad perspective like general materiality.

Final Answer:

The statement is True.