In the "Misstatement Amount" column, you are calculating the amount of the misstatement including the net aggregate amount. Misstatements can be over or under and under misstatements should be reflected in parenthesis. Materiality and misstatements were discussed during the live sessions. In each of the 3 "Materiality Threshold =" columns, you are just entering Y ( Yes) or N ( No ). Yes means it is materially misstated and No means it is not materially misstated.

One more point. To properly calculate misstatements, you take the reported F/S amount less the Audit Adjusted Amount.

During the audit planning phase of the audit cycle, auditors must establish what the acceptable threshold will be before financial statements are considered materially misstated. Cyber Accounting Firm has completed an audit of Patti Wack, Inc. During the audit, the auditors found the misstatements shown below related to Patti Wack's assets. Analyze the balance sheet and audit adjusted amounts. Given the materiality thresholds noted below, determine if the financial statements (specifically the balance sheet) would be considered materially misstated. Reported on the Audit Adjusted Misstatement Materiality Materiality Materiality Asset Balance Sheet Amount Amount Threshold = Threshold = Threshold = Category $6,500 $8,000 $11,500 Current Assets 105,555 117,667 Fixed Assets 227,321 217,123 Intangible Assets 249,028 241,951 LT- Investments 89,745 95,787 Other Assets 190, 191 L 180,549 In "Aggregate