Define what is meant by the phrase “planning materiality threshold”? What factors should be considered in establishing such thresholds? Are there any conditions under which it is appropriate for auditors to change a planning materiality threshold after the given audit has begun?
Answer to relevant QuestionsThis case includes the following quote from a former PCAOB official: “The [audit] firm tends to be the subject of disciplinary action when there is a failure of oversight or supervision. Where a particular partner simply ...Compare and contrast the responsibilities of an audit partner of a major accounting firm with those of a large public company’s CFO. Which work role do you believe is more important? Which is more stressful? Which role ...In your opinion, what primary audit objectives should Grant Thornton have established for JGI’s (a) Prepaid Inventory account (b) Merchandise Inventory account? The AICPA has issued several Audit and Accounting Guides for specialized industries. Do auditors have a responsibility to refer to these guides when auditing clients in those industries? Do these guides override or replace ...Auditing standards don’t specifically discuss the audit procedures that should be applied to a client’s pension-related financial statement amounts. Identify five audit procedures that would be relevant to those items. ...
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