Question
I am having trouble with a problem in my Audit class ACC/546. It involves case 7.1 Anne Aylor. I am struggling with G-7 Please help
I am having trouble with a problem in my Audit class ACC/546. It involves case 7.1 Anne Aylor. I am struggling with G-7 Please help
ReviewExhibits 1and2; audit memosG-3andG-4;and audit schedulesG-5, G-6andG-7. Based on your review, answer each of the following questions:
[a]Why are different materiality bases considered when determining planning materiality?
[b]Why are different materiality thresholds relevant for different audit engagements?
[c]Why is the materiality base that results in the smallest threshold generally used for planning purposes?
[d]Why is the risk of management fraud considered when determining performance materiality?
[e]Why might an auditor not use the same performance materiality amount or percentage of account balance for all financial statement accounts?
[f]Why does the combined total of individual account performance materiality commonly exceed the estimate of planning materiality?
[g]Why might certain trial balance amounts be projected when considering planning materiality?
[2]Based on your review of the Exhibits (1 and 2) and audit memos (G-3andG-4), complete audit schedulesG-5, G-6andG-7.
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