Question: Sarah Bale is an auditor Her work at two companies

Sarah Bale is an auditor. Her work at two companies disclosed inappropriate recognition of revenue. Both cases involved dollar amounts in the $100,000 range. In one case, Bale considered the item material and required her client to restate earnings. In the other case, Bale dismissed the misstatement as being immaterial.
Required
Write a memo that explains how a $100,000 misstatement of revenue is acceptable for one company but unacceptable for a different company.



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  • CreatedApril 20, 2015
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