Question: What is performance materiality?

What is performance materiality?

Step by Step Solution

★★★★★

3.41 Rating (148 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock

Performance materiality also known as tolerable misstatement is an amount less than materiality for the financial statements as a whole It is set by t... View full answer

blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Auditing 12th Questions!

Q:

Assume you are a CPA performing the planning procedures for the 2021 audit of your client, Highbrook Corp., a small owner managed business that is a non-issuer. You are preparing the materiality...

Q:

What is the difference between overall materiality and performance materiality? How does the use of performance materiality affect the audit process?

Q:

Alexander Robinson, a junior auditor working for Big One Accounting Firm. He is included in the audit team engaging in the audit the Financial Reports of Complicated Ltd., a listed company on AST....

Q:

Hi! I need some help with planning MATERIALITY for auditing. How do I determine which accounts are important for Specific Accounts Requiring Lower Performance Materiality? Assignment Two - Countryman...

Q:

Hi! I need some help with planning MATERIALITY for auditing. How do I determine which accounts are important for Specific Accounts Requiring Lower Performance Materiality? Assignment Two - Countryman...

Q:

Hi! I need some help with planning MATERIALITY for auditing. How do I determine which accounts are important for Specific Accounts Requiring Lower Performance Materiality? Assignment Two - Countryman...

Q:

Using your preliminary analytics for Problem 4.56, identify each significant account and disclosure. Using Exhibit 4.12 as a guide, for each significant identified in #1 above, list three things that...

Q:

Integrated Audit Practice 7th Edition - Assignment 3 - Current Workpapers 5-4 ELECTRONIC WORKPAPER OPTION: Complete and print workpaper 5-3 using Excel. Allocation of materiality-performance...

Q:

Using your preliminary analytics for Problem 4.56, identify each significant account and disclosure. Using Exhibit 4.12 as a guide, for each significant identified in #1 above, list three things that...

Q:

Explain why decisions about acceptable audit risk, inherent risk, the preliminary judgement about materiality, and performance materiality should be made early in the audit during the planning phase?...

Q:

1. If assets are $40,000 and stockholders equity is $10,000, how much are liabilities? a. $30,000 b. $50,000 c. $20,000 d. $60,000 e. $10,000 2. To which account in the Balance Sheet is the net...

Q:

A project manager can identify the skills needed for the project from the: * Departmental personnel listings. Project budget. Stakeholder meeting. Work breakdown structure. In addition to identifying...

Q:

You are the portfolio manager at Golden State Hedgers, and managing a portfolio for your client with the following information. Initial Investment V0 Target Date T Floor F risk-free rate rf (EAR)...

Q:

Officer Salaries. The following table gives the monthly salaries (in $1000s) of the six officers of a company. Officer AB C D E F Salary 8 12 16 20 24 28 a. Calculate the population mean monthly...

Q:

The use of audit software has increased dramatically in recent years. Software is now used to fulfill administrative functions in the audit environment, document audit work, and conduct data...

Q:

What are the benefits derived from planning audits?

Q:

What are the benefits derived from planning audits?

Q:

Kingsbird Corp issues 410 shares at $11 par value common stock for $6765. Prepare Kingbird's journal entry.

Q:

5. What information is not needed to calculate inventory valuation by the retail method? A. Cost of net purchases at cost and retail B. Beginning inventory at cost and retail C. Net sales at retail...

Q:

Select ALL statements that are true about central banks and sovereign wealth funds (SWFs). - Central banks and SWFs both have regulatory and monetary policy responsibilities -SWFs are commonly...