What is meant by using bases for setting a preliminary judgment about materiality? How will those bases

Question:

What is meant by using bases for setting a preliminary judgment about materiality? How will those bases differ for the audit of a manufacturing company and a government unit such as a school district?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Auditing and Assurance services an integrated approach

ISBN: 978-0132575959

14th Edition

Authors: Alvin a. arens, Randal j. elder, Mark s. Beasley

See More Books

Question Posted: Oct 10, 2012 07:23 AM

See More Questions

What is meant by using benchmarks for setting a preliminary judgment about materiality? How will those benchmarks differ for the audit of a manufacturing company and a government unit such as a...
What is meant by setting a preliminary judgment about materiality? Identify the most important factors affecting the preliminary judgment.
What is meant by using the marketing mix to gain the cooperation of channel members in implementing the manufacturers channel strategy?
In Problems, assume that the populations are normally distributed and that independent sampling occurred. (a) Test the hypothesis that 1 2 at the a = 0.1 level of significance for the given sample...
Let A be any n n matrix and r 0 a real number. Show that crA(x) = rncA (x/r).
Which city has the worst air pollution: New York, Mexico City, or Moscow? LO.1
Describe the difference between the proportion of false-positives and the false-positive rate.
Alomar Company manufactures four products from a joint production process: barlon, selene, plicene, and corsol. The joint costs for one batch are as follows: Direct materials.... $67,900 Direct labor...
.Munoz Company is a retail company that specializes in selling outdoor camping equipment. The company is considering opening a new store on October 1, 2019. The company president formed a planning...
Consider the problem of finding the shortest path between two points on a plane that has convex polygonal obstacles as shown in Figure 3.31. This is an idealization of the problem that a robot has to...
Explain why materiality is important but difficult to apply in practice.
Assume that Rosanne Madden, CPA, is using 5% of net income before taxes, current assets, or current liabilities as her major guidelines for evaluating materiality. What qualitative factors should she...
Suppose that X1, . . . ,Xn form a random sample of size n from the uniform distribution on the interval [0, 1] and that Yn = max {X1, . . . , Xn}. Find the smallest value of n such that Pr{Yn 0.99} ...
1. Define a person-centered model of care in LTC facilities. 2. Describe two leadership behaviors and two leadership qualities most conducive to moving long-term care organizations toward more...
question 5 all parts 8+0.5 = 4. Consider a system with a lead compensator Ge(s) = +0.13 followed by a plant G(s) = 10 Determine a value for a gain K on the error signal such that the phase margin...
3- Define and describe, in detail, the various communication styles as they relate to negotiation and conflict resolution. Compare the advantages and disadvantages of the styles. Provide a detailed...
SJ Corp ahs the following data for 2020: RM, beginning of 5,000; Purchases of raw materials is 50,000; return of defective raw materials to suppliers of 4,000; return of direct materials from the...
A company is issuing $340,000 worth of 4-year bonds on October 8, 2023, bearing an interest rate of 2%, payable annually. Assume that the current market rate of interest is 3%. a) Will the bonds be...
Which type of company typically has the longest op erating cycle? a. Service company. b. Merchandising company. c. Manufacturing company. d. All equal.
On 1 July 2018, Parent Ltd acquired all the shares of Son Ltd, on a cum-div. basis, for $2,057,000. At this date, the equity of Son Ltd consisted of: $ 1,000,000 Share capital 500 000 shares...
Briefy explain Porters (1980) Five Forces model.
Elias Tech (ET) is a private company founded by Sarah House and Rosa Perks. Sara and Rosa each own a 40 percent interest in the company, with the remaining 20 percent owned by a venture capitalist...
Statements of earnings and financial position for Prairie Stores Corporation are shown. REQUIRED a. Use professional judgment in determining overall materiality based on revenue, net income before...
Why is it important for the auditor to consider risk of material misstatement at the overall financial statement level?
Bass Accounting Services expects its accountants to work a total of 26,000 direct labor hours per year. The company's estimated total indirect costs are $ 260,000. The company uses direct labor hours...
The Balance Sheet has accounts where the accountant must make estimates. Some situations in which estimates affect amounts reported in the balance sheet include: Allowance for doubtful accounts....
Alado fis istirmerfs Tat likifond 205L [ridont inip lanod whadtinion? hingend is antan Qultit foer avdeed Divdasit errem yodichiders Etexlpoges Getmare nelp

What is meant by using bases for setting a preliminary judgment about materiality? How will those bases

Question:

Step by Step Answer:

Because materiality is relative rather than absolute ...View the full answer

Auditing and Assurance services an integrated approach

Students also viewed these Auditing questions