Answer:
TRUE
Explanation:
The U.S. Supreme Court defines materiality as "the magnitude of an omission or misstatement of accounting information because a company or organization should not apply the requirements of an accounting standard if it is immaterial to the financial statements or makes it probable that the judgment of a reasonable person relying on the information would have been changed or influenced by the omission or misstatement.
Materiality concerns the important of an item to users of a financial statements because a financial statement is only "material" if there is a probability that a reasonable person would consider it important.
