Question
Calculate materiality for the client, assuming that it is a profit-oriented company and moderate audit risk. Explain why you chose the base you did and
Calculate materiality for the client, assuming that it is a profit-oriented company and moderate audit risk. Explain why you chose the base you did and why you chose the percentage. You may use guidelines from the textbook or the case study and should refer to the specific guidelines you used in your answer.
Current Year Prior Year
Sales/revenue (net) 30,381,954 26,290,518
Expenses 7,263,786 6,519,376
Gross Margin 8,378,660 7,280,887
Pre-tax Income 1,114,873 761,510
Current Assets 18,993,546 16,966,273
Current Liabilities 8,221,991 6,810,164
Total Assets 19,679,541 17,670,625
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