Final answer:
Materiality significantly impacts an auditor's evidence collection decisions, guiding the amount and type of evidence needed to form an opinion on the financial statements, making the statement true.
Step-by-step explanation:
Materiality is a fundamental concept in auditing that significantly impacts an auditor's decisions regarding the collection of audit evidence. The concept of materiality helps auditors to determine how much and what type of evidence is necessary in order to form their opinion on the financial statements. When an item is considered material, any misstatement or omission of that item could influence the economic decisions of users taken on the basis of the financial statements.
Therefore, the true or false statement is: a. True—materiality does significantly impact the auditor's decisions about how much and what kind of evidence to gather. By evaluating materiality, auditors can focus their efforts on the areas of the audit that are most likely to contain potential misstatements that would be material to the financial statements as a whole.