"Inventory represents 40% of current assets" is an example of a qualitative materiality factor.
Answer: Option C
Explanation:
A principle that connect with the significance of transaction, an amount or discrepancy within accounting and auditing is understood as a "Materiality". For the preparation and presentation of financial statements in the accounting context while for the assessment of misstatements material contained in the financial statements in the audit context. This identification is done, based on quantitative factors and qualitative factors. Whereas the Board can not determine a standardized quantitative materiality threshold or predetermine what might be content in a specific situation.
