Question
1. Assume a 30% tax rate, and the Totals per financial statements provided. Complete the following schedule as per Figure 16.4 (p. 718) in the
1. Assume a 30% tax rate, and the Totals per financial statements provided. Complete the following schedule as per Figure 16.4 (p. 718) in the text. Assume that the Totals per financial statements (second to bottom row) have appropriately been entered on this schedule from the financial statements.
2. Assume that the client does not intend to record any of the above misstatements and that 6 percent of income after taxes is considered a material misstatement. Provide the auditors conclusion in this situation. Only consider the income effect.
3. Assume that the client does intends to record correcting entries for each above misstatement. Provide the auditors conclusion in this situation.
Beta Computer Equipment Company Total Likely Misstatement December 31, 20X3 Debit (Credit) Assets Liabilities Income Statement Non- current Non- current Cost of Selling, Gen. Sales Admin.,Other Current Current Revenue Income Number Type 1 2. 3 4 5 6 Total Uncorrected Tax effect at 30% on current liab. After Tax Effect on Income 9,206,553.00 1,237,543.00 6,239,932.00 2,400,000.00 82,000,000.00 71,000,406.00 8,002,378.00 1,323,839.00 Totals per financial statements Percent of unrecorded to f.sStep by Step Solution
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