Question: A common theme throughout this text is that the auditor should carefully document the reasoning process regarding the assessment of an account balance or an

A common theme throughout this text is that the auditor should carefully document the reasoning process regarding the assessment of an account balance or an internal control deficiency.
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 full answer

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