Roger Company is a midsize company located in the Midwest that handles the distribution of varioushome and garden products. You are part of the engagement

Roger Company is a mid—size company located in the Midwest that handles the distribution of varioushome and garden products. You are part of the engagement team assigned to audit the financialstatements of Roger Company Roger Company has been a client of your firm for many years, and yourfirm has rarely encountered any probiems with them. However, the engagement partner has made it veryclear to you that there is no room for mistakes. Your tasks as one of the auditors on the engagement areoutiined below and in other problems of the remaining chapters. {The Roger Company ACL data files, can also be found under Course—Wide Content, ACL Content foideron the Student Edition of the Mcgraw Hiil auditing text by Messier. mvwmhhecomfmessierfie. The RogerCompany files are already in ACL format; however the files must first be extracted or "unzipped." Afterunzipping the files. click on FILE from the menu toolbar and use the OPEN PROJECT command tonavigate to vmere you have saved the "Roger Company 9e" file and open the project. ) Net income before taxes at Roger Company is stable, predictable. and representative of its size. Thus,the auditors at Roger Company calculate materiality to be 5 percent of net income before taxes. Net income before taxes at Rogerr Company for fiscal 2013 is $1,388,500. Determine materialityfor the auditof Roger Company's 2013 financial statements. Use ACL to determine if the reported AR account balance, $487,000, is materially different from the detailed files in Rogers Company AR table. Definetolerable misstatement as 60 percent of materiality. What might cause differences between the numberreported in the financial statements and the details in the file?