False.
The materiality of an error is not determined solely by whether it would trigger an IRS audit. Materiality is a concept used in accounting and auditing to evaluate the significance of an error or omission in financial statements, and it is determined by the impact that the error could have on the decisions of users of the financial information.
While the risk of an IRS audit may be one factor considered in evaluating materiality, it is not the sole determinant. Other factors may include the dollar amount of the error, the nature of the error, and the context in which the financial statements are being used.