Question
) Green Inc. is a calendar-year corporation. Its financial statements for the years ended 12/31/20 and 12/31/21 contained the following errors: 2020 2021 Ending inventory
) Green Inc. is a calendar-year corporation. Its financial statements for the years ended 12/31/20 and 12/31/21 contained the following errors:
2020 2021
Ending inventory $40,000 understatement $60,000 overstatement
Depreciation expense 15,000 overstatement 40,000 overstatement
Assume that the 2020 errors were not corrected and that no errors occurred in 2019. By what amount will 2020 income before income taxes be overstated or understated?
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The Software Audit Guide
Authors: John W. Helgeson
1st Edition
0873897730, 978-0873897730
