A common theme throughout this text is that the auditor should carefully document the reasoning process regarding
Question:
Required
An auditor has documented the reasoning process and it is going to be reviewed by a partner who is not associated with the audit. Identify the expectations of what the review partner will be looking for in each of the following areas.
a. Materiality. What are the key elements of your reasoning process that should be documented regarding:
• Planning materiality.
• Misstatements that were found and not adjusted.
b. The adequacy of the client's estimate of warranty reserves.
c. The adequacy of the allowance for uncollectible accounts?
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a Reasoning process regarding materiality Planning Materiality The reasoning process should first document the factors that influenced the reasoning process We would expect that the auditor would cons...View the full answer
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Related Book For 
Auditing A Business Risk Approach
ISBN: 978-0538476232
8th edition
Authors: Karla Johnstone, Audrey Gramling, Larry Rittenberg
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