Explain the difference between known and likely misstatements. Assume the auditor tests a sample of $100,000 of
Question:
Explain the difference between known and likely misstatements. Assume the auditor tests a sample of $100,000 of inventory and finds misstatements totaling $5,000. What is the likely misstatement if the account balance is $500,000?
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 50% (6 reviews)
In auditing known misstatements and likely misstatements are terms used to describe the different le...View the full answer
Answered By
Krishnavendra Y
I am a self motivated financial professional knowledgeable in; preparation of financial reports, reconciling and managing accounts, maintaining cash flows, budgets, among other financial reports. I possess strong analytical skills with high attention to detail and accuracy. I am able to act quickly and effectively when dealing with challenging situations. I have the ability to form positive relationships with colleagues and I believe that team work is great key to performance. I always deliver quality, detailed, original (0% plagiarism), well-researched and critically analyzed papers.
5.00+
4+ Reviews
10+ Question Solved
Related Book For
Auditing And Assurance Services An Integrated Approach
ISBN: 9780137879199
18th Edition
Authors: Alvin A. Arens, Randal J. Elder, Mark S. Beasley, Chris E. Hogan
Question Posted:
Students also viewed these Business questions
-
Required a. Use professional judgment in deciding on the preliminary judgment about materiality for earnings, current assets, current liabilities, and total assets. Your conclusions should be stated...
-
Keshk, Walied; Lu, HungYuan Richard; Mande, Vivek (2020). How have US banks adopted the Financial Accounting Standards Board's Level 3 fair value disclosure rules? Accounting & Finance 60, April...
-
Assume that a sample of 100 units was obtained in sampling the inventory in Question. Assume further that the following three misstatements were found: Calculate adjusted misstatement bounds for the...
-
Estimates have been presented to Holly Farms, which is considering two environmental chambers for a project that will detail laboratory confirmations of on-line bacteria tests in chicken meat for the...
-
AS5 indicates that certain circumstances are indicators of a material weakness. What are these circumstances, and why do you think the PCAOB assessed them as being of such importance?
-
Kruger Corporation sells construction equipment to a customer for $50,000. The equipment comes with a standard 2-year warranty covering any repairs that are required during that time. It does not...
-
SWIGART v. BRUNO CALIFORNIA COURT OF APPEALS 13 CAL. APP. 5TH 529 2017 According to the American Endurance Ride Conference, endurance riding is a highly competitive and demanding sport. It is...
-
Fall-Line, Inc. is a Great Falls, Montana, manufacturer of a variety of downhill skis. Fall-line is considering four locations for a new plant: As Pen Colorado; Medicine Lodge Kansas; Broken Bow,...
-
he accounts from the Adjusted Trial Balance are listed in alphabetical order. What is the total longminusterm liabilities? Baker Service Company Adjusted Trial Balance September 30, 2025 Balance...
-
1. Name at least three ways that Shu could automate her asset management. Suggest at least one option for retirement savings, general savings, and general convenience. 2. What major factors should...
-
As part of the engagement team for the audit of JA Tire Manufacturing for the year ended December 31, 2023, you are responsible for auditing the sales and collection cycle. Visit...
-
Jose Morales, CPA, has found ratio and trend analysis relatively useless as a tool in conducting audits. For several engagements, he computed the industry ratios for his clients and compared them...
-
1. During sluggish economic times, the federal governments budgeting priority is to borrow so it can spend much more money than it takes in. What happens to families that try that, and why? 2. What...
-
Assume that the rate of inflation expected over the coming financial year in India is 6.5%. Explain how a 1-year T-bill could earn a negative real rate of return over the next year. How could it have...
-
Volkswagen AG (VW) uses a maximum payback period of 4 years and currently must choose between two mutually exclusive electric car projects. Project Crozz requires an initial outlay of 25,000,000;...
-
Hoffmann-La Roche is considering purchasing a capsule counting and packing machine for 5,500,000 and incurs an additional 130,000 in installation expenses. It is replacing older machines that can be...
-
Parsons Electronics Inc. ended 2017 with a net profit before taxes of 560,000. The company is subject to a 20% tax rate and must pay 50,000 in preferred stock dividends. The balance sheet shows...
-
Conad, an Italian supermarket chain, is considering two mutually exclusive projects. Each project requires an initial investment (CF 0 ) of 1,000,000. Francesco Pugliese, the general director of...
-
List some tax rule restrictions that prevent organizational form arbitrage. How do they succeed in preventing this arbitrage?
-
The Cholesterol Level data sets give cholesterol levels of heart attack patients. Cholesterol measures are taken 2, 4, and 14 days aft er a patient has suffered a heart attack. Is there a significant...
-
Indicate the four phases of the audit process. In which phase does the auditor perform tests of controls?
-
Define attributes sampling. For which types of tests do auditors use attributes sampling?
-
What are the three main phases of audit sampling? Are these phases the same for statistical and nonstatistical sampling methods?
-
For this pre-lab work, you will implement just the structure (and not the behavior) of a custom class. This custom class will eventually have behavior similar to the Java String class. Like the Java...
-
Do you think that the quality of resilience in a person comes by birth or is it influenced by the environment in which a person is brought up?
-
Relisience and change almost seem antithetical at first glance, change is often harder for some than others but what develops resilience in others and how can we leverage resilience to our advantage...
Study smarter with the SolutionInn App