Forensic Accounting

Answer: C - The threshold for deeming a piece of financial information as material is dependent upon on the overall significance of the information. Often, it is the case that materiality is understood in terms of a threshold or criterion. Five percent is often taken as the material threshold point. However, it is the significance of the information that makes it material. If receivable is 1% of the total receivables, but it impacts the financial position significantly, it is material.