Circumstances prevent you from being able to observe the counting of inventory at Brentwood Industries. The inventory amount is material in relation to Brentwood? Industries' financial statements. But, you were able to perform alternative procedures to support the existence and valuation of the inventory at year-end.

 

a. State the condition (either change in accounting principle, failure to follow GAAP, none, reporting involving other auditors, or scope of the audit has been restricted)

b. State the materiality level (either Material, immaterial, highly material, material or highly material, or not applicable)

c. List any additional information needed (either amount of loss, auditor's preliminary judgement, client explanation in a memo, or the size of the misstatement

Answer rating: 100% (QA)

Analysis of the scenario a Condition Scope of the audit has been restricted b Materiality level Mate... View the full answer