What should be the relationship between tolerable misstatement in the audit of an account balance and the

Question:

What should be the relationship between tolerable misstatement in the audit of an account balance and the amount of monetary misstatement considered material to the overall financial statements?

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

Step by Step Answer:

Related Book For book-img-for-question

Auditing An International Approach

ISBN: 978-0071051415

6th edition

Authors: Wally J. Smieliauskas, Kathryn Bewley

See More Books

Question Posted: Jan 09, 2015 09:36 AM

See More Questions

What should be the relationship between Bose's supply management strategy and the development of its performance measurement system?
What should be the relationship between a manufacturing system and the enterprise system?
What should be the basis for incentive payments?
import java.util.ArrayList; import java.util.Map; import java.util.Set; import java.util.TreeMap; /* * * This class contains a map of string keys, representing professors, to an array list of...
Visit 10 different drug stores in your area. Evaluate each store in terms of its overall image and quality of in-store service using an 11-point rating scale (1 = poor, 11 = excellent). Then analyze...
Adolf and Ida Krueger contracted with Pisani Construction, Inc., to erect a metal building as an addition to an existing structure. The two structures were to share a common wall, and the frames and...
Describe what happens to a bar magnet placed in the nonuniform external magnetic field shown in Figure P27.12. Data from Figure P27.12 Figure P27.12 SN
Williams-Santana, Inc., is a manufacturer of high-tech industrial parts that was started in 1999 by two talented engineers with little business training. In 2011, the company was acquired by one of...
4.Indicate, by clicking on the relevant boxes, whether the following statements are true or false in relation to business valuation. The earnings yield method and the dividend growth model should...
The time between arrivals at the drive-through window of Barry Harmons fast-food restaurant follows the distribution given in the table. The service-time distribution is also given. Use the random...
When auditing account balances, why is an incorrect acceptance decision considered more serious than an incorrect rejection decision?
What general set of audit objectives can you use as a frame of reference for specific objectives for the audit of an account balance?
A 2-m 1.5-m section of wall of an industrial furnace burning natural gas is not insulated, and the temperature at the outer surface of this section is measured to be 80C. The temperature of the...
How does the integration of ethical mindfulness practices, such as reflective judgment or moral imagination, enhance individuals' capacity to recognize and address ethical challenges while...
Assume that the real rate of interest is 1 . 7 3 percent and the anticipated percentage change in price levels over the life of the loan contract is 9 . 2 3 percent. What is the nominal interest rate...
Samsung has been producing the new Galaxy X250 smart phone throughout 2022 but doesn't plan to sell it until March 2023. How are these smartphones, which are sitting in a warehouse somewhere in...
Silver Water Motorworks produces small electric motors in lots of 200 with an average yield of 92%. Fifty per cent (50%) of the sub-standard output from the first run through, can be reworked. Direct...
Jaeger, Inc. bonds have a 6 . 4 5 % coupon rate with semiannual coupon payments. They have 1 6 years to maturity and a par value of $ 1 , 0 0 0 . What is the current yield of the bond if the bond is...
In an increasingly competitive and highpressure business environment, instances of workplace rage will inevitably increase. How can managers minimise the potential for such rage in organisations?
Conduct a VRIO analysis by ranking Husson University (in Maine) business school in terms of the following six dimensions relative to the top three rival schools. If you were the dean with a limited...
Consider the following table (shown in two parts): a. What is the EVA in year 5? b. What is the capital charge in year 6? OPERATING NET EOY REVENUE EXPENSES DEPRECIATION OPERATING PROFIT TAXES 5...
What is the main purpose of a written management representation letter? a. Shift responsibility for financial statements from the management to the auditor. b. Provide a substitute source of evidence...
Until when do auditors have a responsibility to perform procedures to find subsequent events? a. The year-end balance sheet date. b. The audit report date. c. The date the audited financial...
Which of the following procedures is part of the audit completion work? a. Risk assessment. b. Control testing. c. Overall evaluation of the financial statements. d. Preparation of the cash flow...
1. A businessman travels between the cities of the following graph. The travel pattern is that he stays in one of the cities for the whole day, and on the next day, he travels to one of the...
How do historical legacies of colonialism, imperialism, and systemic injustice continue to shape contemporary power structures, and what steps can be taken to address and redress these historical...
Izabella is 20 years old. Eighteen months ago, she started selling some of her old clothing which no longer suited her on peer-to-peer social shopping apps such as Letgo and Depop. She was surprised...

What should be the relationship between tolerable misstatement in the audit of an account balance and the

Question:

Step by Step Answer:

The tolerable misstatement judged for the audit of a particular account balance ...View the full answer

Auditing An International Approach

Students also viewed these Auditing questions