6. During the audit of a client, a member of the audit team discovers an overstatement...

 

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6. During the audit of a client, a member of the audit team discovers an overstatement of $380,000 in the revenue account. The following data relates to the audit: Client Information: Revenues Expenses Net Income Total Assets Audit Materiality Information: Overall Materiality b. $18,700,000 $18,500,000 $200,000 $24,100,000 $700,000 Performance Materiality for the Revenue Account $400,000 (Tolerable Misstatement) Required: Is the overstatement in the revenue account quantitatively material? Explain your answer. Use complete sentences. Is the overstatement in the revenue account qualitatively material? Explain your answer. Use complete sentences 6. During the audit of a client, a member of the audit team discovers an overstatement of $380,000 in the revenue account. The following data relates to the audit: Client Information: Revenues Expenses Net Income Total Assets Audit Materiality Information: Overall Materiality b. $18,700,000 $18,500,000 $200,000 $24,100,000 $700,000 Performance Materiality for the Revenue Account $400,000 (Tolerable Misstatement) Required: Is the overstatement in the revenue account quantitatively material? Explain your answer. Use complete sentences. Is the overstatement in the revenue account qualitatively material? Explain your answer. Use complete sentences

Answer rating: 100% (QA)

ATHe material identified cannot be considered as quant... View the full answer