Question
Assume that $2,500,000 is considered material for audit planning purposes for 2014. Do any of the fluctuations in the computed ratios indicate a possible material
Assume that $2,500,000 is considered material for audit planning purposes for 2014. Do any of the fluctuations in the computed ratios indicate a possible material misstatement? Use a spreadsheet to show how you reach your conclusion
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| 2014 | 2013 | 2012 | 2011 |
| Sales | 102.8 | 92.8 | 88.4 | 79.6 |
| Cost of sales | 82.8 | 77.2 | 70.8 | 64.0 |
| Beginning inventory | 10.0 | 8.4 | 8.6 | 7.2 |
| Ending inventory | 12.6 | 10.2 | 9.4 | 8.6 |
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Acca Financial Reporting Practice And Revision Kit
Authors: BPP Learning Media
1st Edition
1509738053, 978-1509738052
