Which of the following statements with regards to materiality in the field of independent auditing is correct?
A) FASB Concept Statement No. 8, Chapter 2 provides “authoritative GAAP guidance” for determining the materiality of a statement deficiency disclosed by an independent audit that involves GAAP-based financial statements.
B) PCAOB auditing standards establish specific quantitative guidelines for determining the materiality of a discovered financial statement deficiency on audits of publically traded companies.
C) AICPA and PCAOB auditing standards do not stipulate specific guidelines that must be applied by an independent auditor in deliberating the materiality of a financial statement deficiency discovered in the course of performing an audit.
D) AICPA auditing standards state that the quantitative impacts of a financial statement deficiency discovered in the course of performing an independent audit will normally have a more important bearing on the materiality of the deficiency than the qualitative financial reporting impacts of the same or similar deficiency.