Assume that a client has materiality of ($ 10) million for financial statements that has accounts receivable

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Assume that a client has materiality of $\$ 10$ million for financial statements that has accounts receivable (net) of $\$ 20$ million and inventory of $\$ 80$ million.

a. What amount of tolerable misstatement would you establish for accounts receivable? Justify your answer.

b. What amount of tolerable misstatement would you establish for inventory? Justify your answer.

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Auditing Assurance And Risk

ISBN: 9780324313185

3rd Edition

Authors: W. Robert Knechel, Steve Salterio, Brian Ballou

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Question Posted: May 03, 2024 02:02 AM

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Assume that a client has materiality of ($ 10) million for financial statements that has accounts receivable

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Auditing Assurance And Risk

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