Which of the following statements is FALSE regarding the application of the concept of materiality?

The concept of materiality is essential in accounting, as it determines the significance of financial information in influencing decision-making by users. When considering the options, a statement about the application of materiality must be assessed based on its alignment with established accounting principles.

The assertion that none of the statements is false is accurate because each provided statement reflects a valid perspective on materiality. A misstatement's materiality can indeed be influenced by its size, which is the conventional approach; substantial errors in financial reporting can mislead stakeholders. The recognition that potential misstatements can be considered material, irrespective of their size, acknowledges that the context and implications of the misstatement may carry significance. This approach allows for a broader consideration of impacts beyond mere quantitative measures. Additionally, potential legal violations are often treated as material due to their potential repercussions on a company's financial position and legal standing, which can drastically influence user perceptions and decisions.

In summary, all the statements correctly articulate different facets of materiality, leading to the conclusion that there is no false statement among them. Understanding materiality's nuances helps professionals recognize what constitutes significant information that must be reported or disclosed in financial statements.