Question
Sunland Inc. is a calendar-year corporation. Its financial statements for the years ended 12/31/17 and 12/31/18 contained the following errors: 2017 2018 Ending inventory $47000
Sunland Inc. is a calendar-year corporation. Its financial statements for the years ended 12/31/17 and 12/31/18 contained the following errors:
| 2017 | 2018 | |||||
| Ending inventory | $47000 | overstatement | $98000 | understatement | ||
| Depreciation expense | 17500 | understatement | 38000 | overstatement | ||
Assume that the 2017 errors were not corrected and that no errors occurred in 2016. By what amount will 2017 income before income taxes be overstated or understated?
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Lessons Learned On The Audit Trail
Authors: Richard F.Chambers, CIA, QIAL, CGAP, CCSA, CRMA
1st Edition
0894139037, 978-0894139031
