Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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.

  1. Discuss the inherent risk assessment for each account
  2. Discuss how you would apply materiality to each account
  3. Discuss the audit impact of the above assessments on each account; and
  4. 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

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Hospitality Financial Accounting

Authors: Jerry J. Weygandt, Donald E. Kieso, Paul D. Kimmel, Agnes L.

2nd Edition

9780470598092, 470083603, 978-0470083604

More Books

Students also viewed these Accounting questions