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Professional application questions 4.25 Materiality assessment One of the clients of MMM Chartered Accountants operates a restaurant. From January of the current year, the business
Professional application questions 4.25 Materiality assessment One of the clients of MMM Chartered Accountants operates a restaurant. From January of the current year, the business has consistently paid its suppliers late, well in excess of the suppliers' normal credit terms. This has resulted in some suppliers requesting cash on delivery from the business. The auditor has reviewed the correspondence between the business and its bank and nds that the business has been experiencing cash ow problems for two years. Required Explain whether (and, if so, how) the information provided impacts on the auditor's assessment of preliminary materiality
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