a. Identify two factors the auditor should consider in allocating financial statement materiality to accounts. b. If

Question:

a. Identify two factors the auditor should consider in allocating financial statement materiality to accounts.

b. If the amount of error found in an account is less than its materiality allocation, what effect might this have on the audit of other accounts?

c. How are materiality and audit evidence related? Explain.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Modern Auditing

ISBN: 9780471596875

6th Edition

Authors: William C. Boynton, Walter G. Kell

See More Books

Question Posted: May 08, 2024 12:02 PM

See More Questions

Michael, the CEO of a food-processing firm, wants to expand his personal diversity skills to become a more inclusive leader. He currently understands that there are human differences and recognizes...
Required a. Use professional judgment in deciding on the preliminary judgment about materiality for earnings, current assets, current liabilities, and total assets. Your conclusions should be stated...
The Crazy Eddie fraud may appear smaller and gentler than the massive billion-dollar frauds exposed in recent times, such as Bernie Madoffs Ponzi scheme, frauds in the subprime mortgage market, the...
The University of Professional Studies, Accra (UPSA) is a public university in Ghana. UPSA is the first university in Ghana to provide both academic and business professional education. The...
Show that the product of two orthogonal matrices is also an orthogonal matrix. Is the product of two permutation matrices a permutation matrix? Explain.
In Exercises 3744, perform the indicated matrix operations given that A, B, and C are defined as follows. If an operation is not defined, state the reason. A - C = 4 0 5 1 -3 0 B 5 1 1 1 -[A] - [1]...
Then who is the Product Owner?
Thomas Bell, a minor, went to work in the Pittsburgh beauty parlor of Sam Pankas and agreed that when he left the employment, he would not work in or run a beauty parlor business within a 10-mile...
Q.11 On November 03, 2017, Tim sold 1,000 shares of Citigroup stock (adjusted basis $45,000) for $28,000. On December 01, 2017, Tim purchased 1,200 share of Citigroup stock for $$27,500 What is Tim's...
a. Define inherent risk. b. When might an auditor choose to forego assessing inherent risk for an assertion?
a. Define materiality at the account-balance level. b. What is another name for materiality at this level? c. Distinguish between the terms material account balance and materiality.
Derek is disappointed in his high-speed Internet service. Although the Internet is seldom down, it kicks into slow mode quite often, which Derek considers to be a failure. He has tried three service...
Simulate rolling a dice using Math.random() . Your roll function should allow the caller to specify any number of sides, but default to 6 if no side count is given: roll() assumes a 6 sided dice,...
Drama Read the excerpt from a play. Then, answer the question(s). (1) (2) Belle: Having trouble deciding what will make you look like both a power to be reckoned with and a fetching young lady while...
Use a substitution of the form u= ax + b to evaluate the following indefinite integral. S3x 3x+4 dx
Task 3 In order to support other staff to complete future risk assessments, produce a short-written report that explains. how hazards that become risks can be controlled the importance of fully...
let arr = [x => x + 5, x => 8, x => x * 2]; let b = X; let a = arr.reduce((acc, f) => acc + f(b), 0); If we know a is 28, what's the value of X?
Consider the following two separate firms. One firm manufactures flexible packaging films for the snack, bakery, confectionery, and tobacco industries. Its manufacturing process has been quite stable...
Juarez worked for Westarz Homes at construction sites for five years. Bever was a superintendent at construction sites, supervising subcontractors and moving trash from sites to landfills. He...
LaMont works for a company in downtown Chicago. The company encourages employees to use public transportation (to save the environment) by providing them with transit passes at a cost of $289 per...
The Interest accrued on $6,200 at 6% for 30 days is: (Use 360 days a year.) Multiple Choice $434 $37 $43 $186 $31
Which of the following businesses would be most likely valued by the capitalized excess earnings method? Group of answer choices An internet auction site A McDonalds franchise A retail store selling...

a. Identify two factors the auditor should consider in allocating financial statement materiality to accounts. b. If

Question:

Step by Step Answer:

a Two factors that the auditor should consider in allocating financial statement materiality to accounts are 1 Account size and significance The auditor should consider the size and significance of ea...View the full answer

Modern Auditing

Students also viewed these Business questions