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You complete procedures over the Inventory and find exceptions totaling $40K. The established materiality threshold is $30K. Answer the following As is (without making an
You complete procedures over the Inventory and find exceptions totaling $40K. The established materiality threshold is $30K. Answer the following
- As is (without making an adjustments), is the balance fairly stated? If no, what needs to be done for the account to be fairly stated?
- You discuss the adjustments above with management and they decide they do not want to make the adjustments. As the $40K is over materiality (i.e. a material difference), does this impact the audit opinion over the financial statements and if yes, how?
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Financial Accounting For Decision Makers
Authors: Peter Atrill, Eddie McLaney
7th Edition
027378563X, 9780273785637
