Assume you are auditing a publicly-traded company and you have set planning materiality at $700,000 by using an average of the past 3 years' income before taxes as a quantitative materiality base. this year your client's financial performance was unusually poor and the client's pre-audit net income is $250,000 while auditing long-term assets. You identified a misstatement of $300,000related to expenses that were inappropriately capitalized. is the $300,000misstatement material? why or why not?

Answer rating: 100% (QA)

the 300000 misstatement is considered material as it exceeds the threshold of materiality set by the ... View the full answer