Question
Question 1 This is an excerpt from the trial balance for Sinclair Pastoral Group (SPG). Performance materiality for the trial balance has been assessed as
Question 1
This is an excerpt from the trial balance for Sinclair Pastoral Group (SPG). Performance materiality for the trial balance has been assessed as $4.2M for 2020 and $3.9M for 2019 at 70% with a moderate risk of material misstatement. Control risk has been assessed as high for these three accounts. Use the numbers in the first column to record your response.
- Discuss the inherent risk assessment for each account
- Discuss how you would apply materiality to each account
- Discuss the audit impact of the above assessments on each account; and
- Provide an overall conclusion about the audit approach for this group of accounts
| No. | Account Name | 2018 Ms | 2019 Ms | 2020 Ms |
| 1 | Livestock | 421.88 | 252.33 | 285.97 |
| 2 | Pastoral property & improvements at fair value | 591.16 | 738.46 | 810.56 |
| 3 | Industrial property & improvements at cost | 20.17 | 31.28 | 30.99 |
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Income Tax Fundamentals 2013
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
31st Edition
1111972516, 978-1285586618, 1285586611, 978-1285613109, 978-1111972516
