Question: Audit I have a question about performance materiality If for example my accounts payable account had a misstatement of $300,000 and the performance materiality I

Audit

I have a question about performance materiality

If for example my accounts payable account had a misstatement of $300,000 and the performance materiality I set for the account was $305,000 does this mean that the misstatement is material or immaterial?

Also does the reasoning behind why the misstatement occurred play a role in determining if the misstatement is material?

thank you!

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock 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 Accounting Questions!

Calculate materiality Learning objective One of the underlying principles in auditing is the concept of materiality. An auditor designs procedures in order to identify and correct errors or...

Calculate materiality Learning objective One of the underlying principles in auditing is the concept of materiality . An auditor designs procedures in order to identify and correct errors or...

Calculate materiality Learning objective One of the underlying principles in auditing is the concept of materiality. An auditor designs procedures in order to identify and correct errors or...

Provide two examples of when an auditor might set a lower level of performance materiality for a particular class of transactions, account balance, or disclosure. An auditor might set a lower level...

You have been assigned to the audit of the financial statements of Office Moving and Storage Limited (OMS) for its year ending December 31, 20x2. The company started 10 years ago and is in the...

You have been assigned to the audit of the financial statements of Office Moving and Storage Limited (OMS) for its year ending December 31, 20X2. The company started 10 years ago and is in the...

1:29 Expert Q&A Done 44 Q3. 13 roints) Match the appropriate terms (a-n) with the definitions provided below: Management assertions h. Balance-related audit objectives b. Vouching Fraud c....

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....

less then 150wrds more than 100!! per Q. 10. Find Table 8-2 on page 242. Read the column "performance materiality" as "tolerable misstatement". Explain: a. How "tolerable misstatement" for cash,...

- Chapter I Definitions: FS audit, IC audit, compliance audits, operational audits, materiality Limitations of an audit Mgmt responsibilities vs auditor responsibilities Impact of SOX 2002 What do...

(8 pts) Let f(n) = 1x1 + 2x2 + + (n-1)xn-1 + nxn. Find g(n) so that f(n) is (g(n)). Justify your answer by presenting clear arguments for the O and 2 bounds.

Custom Computers, Inc. from Problem 9 is considering a new ordering policy. The new order quantity would be 650 heat sinks. Recalculate Problem 9, parts (a) through (e), and compare results. (a)...

Coursework Brief Part B It is now March 2025 and Gordon Finney has returned the signed engagement letter, delivered his documents for money laundering identification purposes and has agreed the fee...

P-1) (100 Pts.) A chemical manufacturing company (CMC) has a contract for the procurement of the neccssaly chemicals from four suppliers. The chemicals purchased from Supplier A are priced at $20...

Drawing from a pool of potentially international assignees who are seen as high flyers, and as part of a more general management development process, may be more effective and prevent failure, but...

adaptability of family: this factor is crucial to the success of a foreign assignment, because if the family get homesick or they simply are unhappy in the foreign environment, this may lead to low...

emotional stability and maturity: this involves having the staying power and emotional maturity to maintain equilibrium in a foreign environment as well as being non-judgmental in relationships with...