For each of the following independent scenarios, identify how materiality influence an auditor$$s reporting decision.

Your client prohibits confirmation of accounts receivable, and sufficient appropriate evidence cannot be obtained using alternative procedures.

Your client is a utility company that follows the practice of recognizing revenue when it is billed to customers. At the end of the year, amounts earned but not yet billed are not recorded in the accounts or reported in the financial statements.

Your client leases buildings for its chain of restaurants under terms that qualify as capital leases. These leases are not capitalized as leased property assets and lease obligations.

Your client company has lost a lawsuit. The case is on appeal in an attempt to reduce the amount of damages awarded to the plaintiff