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Bin Burger Bar (BBB) is a rapidly expanding chain of gourmet burger and beer restaurants that has been operating throughout the lower mainland and Vancouver Island for over 12 years. BBB is a family owned business that employs over 195 staff in its 14 locations. BBB is owned by Angus Mann whose passion for cooking is evident in the unique burger topping he offers. To keep pace with changing customer preferences, BBB has been providing its customers with gluten free meal options. As BBB doesn't open for breakfast, it is also able to provide gluten free cooking lessons in the mornings to those who suffer from intolerance to gluten. For the past four years, BBB has been the recipient of an annual grant from the Canadian National Celiac Society (Society), a not-for-profit organization dedicated to education and awareness of gluten intolerance. The Society requires that grant recipients spend the funds on specific activities. In addition, the Society requires recipients to produce audited financial statements on an annual basis to evaluate their financial health. Angus is very proud of BBB's profitability and growth. Angus' success, in part, is due to his strong financial management skills. He would also like to open three more burger restaurants next to community colleges over the next three years. To finance this expansion, BBB is applying for a long-term loan from the Duncan Credit Union. Extracts from BBB's annual financial statements are as follows: Revenue $ 7,890,000 Education and awareness training $250,000 Net income before tax $ 4,600,000 Total assets $11,700,000 Accounts receivable $ 885,000 Inventory $ 3,875,000 Accounts payable $1,025,000 Additional information: . A $150.000 bonus based on income was paid to BBB's management team in the last fiscal year due to its extraordinary contribution of opening up three new burger bars in the year. During the year, in an effort to generate cash for the expansion, BBB sold a tract of land located in Langford. The gain on the sale of the land was $480,000. BBB has been audited for many years by Lansdown and Interurban, LLP. 1. Who are the primary users of the financial statement and what is important to them (their strategic objectives)? List and discuss no more than three users. 2. Based on your user analysis (above), discuss what financial statement base you will use to determine materiality, what the relevant range is for this base and why you would chose an amount at the lower or higher end of the range in this situation. [Note: focus on illustrating the logic of your thought process.] 3. Assume that you select profitability as the relevant base to calculate materiality. Calculate materiality (assume the relevant percentage is 10%) - show your calculation. Assume that you establish that overall materiality is $100O,000. 1) Calculate performance materiality. 2) Describe why the auditor will set performance materiality. 1) If you were the auditor of BBB, discuss whether you would calculate performance materiality - why or why not? (2 marks) INote: focus on illustrating the logic of your thought process. 2) Assume that you set overall materiality at $80,000 and that you have decied to calculate specific materiality - prepare the calculation. (1/2 mark) 3) Assume that you set specific materiality at $50,000, calculate specific performance materiality. (1/2 mark) Bin Burger Bar (BBB) is a rapidly expanding chain of gourmet burger and beer restaurants that has been operating throughout the lower mainland and Vancouver Island for over 12 years. BBB is a family owned business that employs over 195 staff in its 14 locations. BBB is owned by Angus Mann whose passion for cooking is evident in the unique burger topping he offers. To keep pace with changing customer preferences, BBB has been providing its customers with gluten free meal options. As BBB doesn't open for breakfast, it is also able to provide gluten free cooking lessons in the mornings to those who suffer from intolerance to gluten. For the past four years, BBB has been the recipient of an annual grant from the Canadian National Celiac Society (Society), a not-for-profit organization dedicated to education and awareness of gluten intolerance. The Society requires that grant recipients spend the funds on specific activities. In addition, the Society requires recipients to produce audited financial statements on an annual basis to evaluate their financial health. Angus is very proud of BBB's profitability and growth. Angus' success, in part, is due to his strong financial management skills. He would also like to open three more burger restaurants next to community colleges over the next three years. To finance this expansion, BBB is applying for a long-term loan from the Duncan Credit Union. Extracts from BBB's annual financial statements are as follows: Revenue $ 7,890,000 Education and awareness training $250,000 Net income before tax $ 4,600,000 Total assets $11,700,000 Accounts receivable $ 885,000 Inventory $ 3,875,000 Accounts payable $1,025,000 Additional information: . A $150.000 bonus based on income was paid to BBB's management team in the last fiscal year due to its extraordinary contribution of opening up three new burger bars in the year. During the year, in an effort to generate cash for the expansion, BBB sold a tract of land located in Langford. The gain on the sale of the land was $480,000. BBB has been audited for many years by Lansdown and Interurban, LLP. 1. Who are the primary users of the financial statement and what is important to them (their strategic objectives)? List and discuss no more than three users. 2. Based on your user analysis (above), discuss what financial statement base you will use to determine materiality, what the relevant range is for this base and why you would chose an amount at the lower or higher end of the range in this situation. [Note: focus on illustrating the logic of your thought process.] 3. Assume that you select profitability as the relevant base to calculate materiality. Calculate materiality (assume the relevant percentage is 10%) - show your calculation. Assume that you establish that overall materiality is $100O,000. 1) Calculate performance materiality. 2) Describe why the auditor will set performance materiality. 1) If you were the auditor of BBB, discuss whether you would calculate performance materiality - why or why not? (2 marks) INote: focus on illustrating the logic of your thought process. 2) Assume that you set overall materiality at $80,000 and that you have decied to calculate specific materiality - prepare the calculation. (1/2 mark) 3) Assume that you set specific materiality at $50,000, calculate specific performance materiality. (1/2 mark) Bin Burger Bar (BBB) is a rapidly expanding chain of gourmet burger and beer restaurants that has been operating throughout the lower mainland and Vancouver Island for over 12 years. BBB is a family owned business that employs over 195 staff in its 14 locations. BBB is owned by Angus Mann whose passion for cooking is evident in the unique burger topping he offers. To keep pace with changing customer preferences, BBB has been providing its customers with gluten free meal options. As BBB doesn't open for breakfast, it is also able to provide gluten free cooking lessons in the mornings to those who suffer from intolerance to gluten. For the past four years, BBB has been the recipient of an annual grant from the Canadian National Celiac Society (Society), a not-for-profit organization dedicated to education and awareness of gluten intolerance. The Society requires that grant recipients spend the funds on specific activities. In addition, the Society requires recipients to produce audited financial statements on an annual basis to evaluate their financial health. Angus is very proud of BBB's profitability and growth. Angus' success, in part, is due to his strong financial management skills. He would also like to open three more burger restaurants next to community colleges over the next three years. To finance this expansion, BBB is applying for a long-term loan from the Duncan Credit Union. Extracts from BBB's annual financial statements are as follows: Revenue $ 7,890,000 Education and awareness training $250,000 Net income before tax $ 4,600,000 Total assets $11,700,000 Accounts receivable $ 885,000 Inventory $ 3,875,000 Accounts payable $1,025,000 Additional information: . A $150.000 bonus based on income was paid to BBB's management team in the last fiscal year due to its extraordinary contribution of opening up three new burger bars in the year. During the year, in an effort to generate cash for the expansion, BBB sold a tract of land located in Langford. The gain on the sale of the land was $480,000. BBB has been audited for many years by Lansdown and Interurban, LLP. 1. Who are the primary users of the financial statement and what is important to them (their strategic objectives)? List and discuss no more than three users. 2. Based on your user analysis (above), discuss what financial statement base you will use to determine materiality, what the relevant range is for this base and why you would chose an amount at the lower or higher end of the range in this situation. [Note: focus on illustrating the logic of your thought process.] 3. Assume that you select profitability as the relevant base to calculate materiality. Calculate materiality (assume the relevant percentage is 10%) - show your calculation. Assume that you establish that overall materiality is $100O,000. 1) Calculate performance materiality. 2) Describe why the auditor will set performance materiality. 1) If you were the auditor of BBB, discuss whether you would calculate performance materiality - why or why not? (2 marks) INote: focus on illustrating the logic of your thought process. 2) Assume that you set overall materiality at $80,000 and that you have decied to calculate specific materiality - prepare the calculation. (1/2 mark) 3) Assume that you set specific materiality at $50,000, calculate specific performance materiality. (1/2 mark) Bin Burger Bar (BBB) is a rapidly expanding chain of gourmet burger and beer restaurants that has been operating throughout the lower mainland and Vancouver Island for over 12 years. BBB is a family owned business that employs over 195 staff in its 14 locations. BBB is owned by Angus Mann whose passion for cooking is evident in the unique burger topping he offers. To keep pace with changing customer preferences, BBB has been providing its customers with gluten free meal options. As BBB doesn't open for breakfast, it is also able to provide gluten free cooking lessons in the mornings to those who suffer from intolerance to gluten. For the past four years, BBB has been the recipient of an annual grant from the Canadian National Celiac Society (Society), a not-for-profit organization dedicated to education and awareness of gluten intolerance. The Society requires that grant recipients spend the funds on specific activities. In addition, the Society requires recipients to produce audited financial statements on an annual basis to evaluate their financial health. Angus is very proud of BBB's profitability and growth. Angus' success, in part, is due to his strong financial management skills. He would also like to open three more burger restaurants next to community colleges over the next three years. To finance this expansion, BBB is applying for a long-term loan from the Duncan Credit Union. Extracts from BBB's annual financial statements are as follows: Revenue $ 7,890,000 Education and awareness training $250,000 Net income before tax $ 4,600,000 Total assets $11,700,000 Accounts receivable $ 885,000 Inventory $ 3,875,000 Accounts payable $1,025,000 Additional information: . A $150.000 bonus based on income was paid to BBB's management team in the last fiscal year due to its extraordinary contribution of opening up three new burger bars in the year. During the year, in an effort to generate cash for the expansion, BBB sold a tract of land located in Langford. The gain on the sale of the land was $480,000. BBB has been audited for many years by Lansdown and Interurban, LLP. 1. Who are the primary users of the financial statement and what is important to them (their strategic objectives)? List and discuss no more than three users. 2. Based on your user analysis (above), discuss what financial statement base you will use to determine materiality, what the relevant range is for this base and why you would chose an amount at the lower or higher end of the range in this situation. [Note: focus on illustrating the logic of your thought process.] 3. Assume that you select profitability as the relevant base to calculate materiality. Calculate materiality (assume the relevant percentage is 10%) - show your calculation. Assume that you establish that overall materiality is $100O,000. 1) Calculate performance materiality. 2) Describe why the auditor will set performance materiality. 1) If you were the auditor of BBB, discuss whether you would calculate performance materiality - why or why not? (2 marks) INote: focus on illustrating the logic of your thought process. 2) Assume that you set overall materiality at $80,000 and that you have decied to calculate specific materiality - prepare the calculation. (1/2 mark) 3) Assume that you set specific materiality at $50,000, calculate specific performance materiality. (1/2 mark) Bin Burger Bar (BBB) is a rapidly expanding chain of gourmet burger and beer restaurants that has been operating throughout the lower mainland and Vancouver Island for over 12 years. BBB is a family owned business that employs over 195 staff in its 14 locations. BBB is owned by Angus Mann whose passion for cooking is evident in the unique burger topping he offers. To keep pace with changing customer preferences, BBB has been providing its customers with gluten free meal options. As BBB doesn't open for breakfast, it is also able to provide gluten free cooking lessons in the mornings to those who suffer from intolerance to gluten. For the past four years, BBB has been the recipient of an annual grant from the Canadian National Celiac Society (Society), a not-for-profit organization dedicated to education and awareness of gluten intolerance. The Society requires that grant recipients spend the funds on specific activities. In addition, the Society requires recipients to produce audited financial statements on an annual basis to evaluate their financial health. Angus is very proud of BBB's profitability and growth. Angus' success, in part, is due to his strong financial management skills. He would also like to open three more burger restaurants next to community colleges over the next three years. To finance this expansion, BBB is applying for a long-term loan from the Duncan Credit Union. Extracts from BBB's annual financial statements are as follows: Revenue $ 7,890,000 Education and awareness training $250,000 Net income before tax $ 4,600,000 Total assets $11,700,000 Accounts receivable $ 885,000 Inventory $ 3,875,000 Accounts payable $1,025,000 Additional information: . A $150.000 bonus based on income was paid to BBB's management team in the last fiscal year due to its extraordinary contribution of opening up three new burger bars in the year. During the year, in an effort to generate cash for the expansion, BBB sold a tract of land located in Langford. The gain on the sale of the land was $480,000. BBB has been audited for many years by Lansdown and Interurban, LLP. 1. Who are the primary users of the financial statement and what is important to them (their strategic objectives)? List and discuss no more than three users. 2. Based on your user analysis (above), discuss what financial statement base you will use to determine materiality, what the relevant range is for this base and why you would chose an amount at the lower or higher end of the range in this situation. [Note: focus on illustrating the logic of your thought process.] 3. Assume that you select profitability as the relevant base to calculate materiality. Calculate materiality (assume the relevant percentage is 10%) - show your calculation. Assume that you establish that overall materiality is $100O,000. 1) Calculate performance materiality. 2) Describe why the auditor will set performance materiality. 1) If you were the auditor of BBB, discuss whether you would calculate performance materiality - why or why not? (2 marks) INote: focus on illustrating the logic of your thought process. 2) Assume that you set overall materiality at $80,000 and that you have decied to calculate specific materiality - prepare the calculation. (1/2 mark) 3) Assume that you set specific materiality at $50,000, calculate specific performance materiality. (1/2 mark) Bin Burger Bar (BBB) is a rapidly expanding chain of gourmet burger and beer restaurants that has been operating throughout the lower mainland and Vancouver Island for over 12 years. BBB is a family owned business that employs over 195 staff in its 14 locations. BBB is owned by Angus Mann whose passion for cooking is evident in the unique burger topping he offers. To keep pace with changing customer preferences, BBB has been providing its customers with gluten free meal options. As BBB doesn't open for breakfast, it is also able to provide gluten free cooking lessons in the mornings to those who suffer from intolerance to gluten. For the past four years, BBB has been the recipient of an annual grant from the Canadian National Celiac Society (Society), a not-for-profit organization dedicated to education and awareness of gluten intolerance. The Society requires that grant recipients spend the funds on specific activities. In addition, the Society requires recipients to produce audited financial statements on an annual basis to evaluate their financial health. Angus is very proud of BBB's profitability and growth. Angus' success, in part, is due to his strong financial management skills. He would also like to open three more burger restaurants next to community colleges over the next three years. To finance this expansion, BBB is applying for a long-term loan from the Duncan Credit Union. Extracts from BBB's annual financial statements are as follows: Revenue $ 7,890,000 Education and awareness training $250,000 Net income before tax $ 4,600,000 Total assets $11,700,000 Accounts receivable $ 885,000 Inventory $ 3,875,000 Accounts payable $1,025,000 Additional information: . A $150.000 bonus based on income was paid to BBB's management team in the last fiscal year due to its extraordinary contribution of opening up three new burger bars in the year. During the year, in an effort to generate cash for the expansion, BBB sold a tract of land located in Langford. The gain on the sale of the land was $480,000. BBB has been audited for many years by Lansdown and Interurban, LLP. 1. Who are the primary users of the financial statement and what is important to them (their strategic objectives)? List and discuss no more than three users. 2. Based on your user analysis (above), discuss what financial statement base you will use to determine materiality, what the relevant range is for this base and why you would chose an amount at the lower or higher end of the range in this situation. [Note: focus on illustrating the logic of your thought process.] 3. Assume that you select profitability as the relevant base to calculate materiality. Calculate materiality (assume the relevant percentage is 10%) - show your calculation. Assume that you establish that overall materiality is $100O,000. 1) Calculate performance materiality. 2) Describe why the auditor will set performance materiality. 1) If you were the auditor of BBB, discuss whether you would calculate performance materiality - why or why not? (2 marks) INote: focus on illustrating the logic of your thought process. 2) Assume that you set overall materiality at $80,000 and that you have decied to calculate specific materiality - prepare the calculation. (1/2 mark) 3) Assume that you set specific materiality at $50,000, calculate specific performance materiality. (1/2 mark) Bin Burger Bar (BBB) is a rapidly expanding chain of gourmet burger and beer restaurants that has been operating throughout the lower mainland and Vancouver Island for over 12 years. BBB is a family owned business that employs over 195 staff in its 14 locations. BBB is owned by Angus Mann whose passion for cooking is evident in the unique burger topping he offers. To keep pace with changing customer preferences, BBB has been providing its customers with gluten free meal options. As BBB doesn't open for breakfast, it is also able to provide gluten free cooking lessons in the mornings to those who suffer from intolerance to gluten. For the past four years, BBB has been the recipient of an annual grant from the Canadian National Celiac Society (Society), a not-for-profit organization dedicated to education and awareness of gluten intolerance. The Society requires that grant recipients spend the funds on specific activities. In addition, the Society requires recipients to produce audited financial statements on an annual basis to evaluate their financial health. Angus is very proud of BBB's profitability and growth. Angus' success, in part, is due to his strong financial management skills. He would also like to open three more burger restaurants next to community colleges over the next three years. To finance this expansion, BBB is applying for a long-term loan from the Duncan Credit Union. Extracts from BBB's annual financial statements are as follows: Revenue $ 7,890,000 Education and awareness training $250,000 Net income before tax $ 4,600,000 Total assets $11,700,000 Accounts receivable $ 885,000 Inventory $ 3,875,000 Accounts payable $1,025,000 Additional information: . A $150.000 bonus based on income was paid to BBB's management team in the last fiscal year due to its extraordinary contribution of opening up three new burger bars in the year. During the year, in an effort to generate cash for the expansion, BBB sold a tract of land located in Langford. The gain on the sale of the land was $480,000. BBB has been audited for many years by Lansdown and Interurban, LLP. 1. Who are the primary users of the financial statement and what is important to them (their strategic objectives)? List and discuss no more than three users. 2. Based on your user analysis (above), discuss what financial statement base you will use to determine materiality, what the relevant range is for this base and why you would chose an amount at the lower or higher end of the range in this situation. [Note: focus on illustrating the logic of your thought process.] 3. Assume that you select profitability as the relevant base to calculate materiality. Calculate materiality (assume the relevant percentage is 10%) - show your calculation. Assume that you establish that overall materiality is $100O,000. 1) Calculate performance materiality. 2) Describe why the auditor will set performance materiality. 1) If you were the auditor of BBB, discuss whether you would calculate performance materiality - why or why not? (2 marks) INote: focus on illustrating the logic of your thought process. 2) Assume that you set overall materiality at $80,000 and that you have decied to calculate specific materiality - prepare the calculation. (1/2 mark) 3) Assume that you set specific materiality at $50,000, calculate specific performance materiality. (1/2 mark) Bin Burger Bar (BBB) is a rapidly expanding chain of gourmet burger and beer restaurants that has been operating throughout the lower mainland and Vancouver Island for over 12 years. BBB is a family owned business that employs over 195 staff in its 14 locations. BBB is owned by Angus Mann whose passion for cooking is evident in the unique burger topping he offers. To keep pace with changing customer preferences, BBB has been providing its customers with gluten free meal options. As BBB doesn't open for breakfast, it is also able to provide gluten free cooking lessons in the mornings to those who suffer from intolerance to gluten. For the past four years, BBB has been the recipient of an annual grant from the Canadian National Celiac Society (Society), a not-for-profit organization dedicated to education and awareness of gluten intolerance. The Society requires that grant recipients spend the funds on specific activities. In addition, the Society requires recipients to produce audited financial statements on an annual basis to evaluate their financial health. Angus is very proud of BBB's profitability and growth. Angus' success, in part, is due to his strong financial management skills. He would also like to open three more burger restaurants next to community colleges over the next three years. To finance this expansion, BBB is applying for a long-term loan from the Duncan Credit Union. Extracts from BBB's annual financial statements are as follows: Revenue $ 7,890,000 Education and awareness training $250,000 Net income before tax $ 4,600,000 Total assets $11,700,000 Accounts receivable $ 885,000 Inventory $ 3,875,000 Accounts payable $1,025,000 Additional information: . A $150.000 bonus based on income was paid to BBB's management team in the last fiscal year due to its extraordinary contribution of opening up three new burger bars in the year. During the year, in an effort to generate cash for the expansion, BBB sold a tract of land located in Langford. The gain on the sale of the land was $480,000. BBB has been audited for many years by Lansdown and Interurban, LLP. 1. Who are the primary users of the financial statement and what is important to them (their strategic objectives)? List and discuss no more than three users. 2. Based on your user analysis (above), discuss what financial statement base you will use to determine materiality, what the relevant range is for this base and why you would chose an amount at the lower or higher end of the range in this situation. [Note: focus on illustrating the logic of your thought process.] 3. Assume that you select profitability as the relevant base to calculate materiality. Calculate materiality (assume the relevant percentage is 10%) - show your calculation. Assume that you establish that overall materiality is $100O,000. 1) Calculate performance materiality. 2) Describe why the auditor will set performance materiality. 1) If you were the auditor of BBB, discuss whether you would calculate performance materiality - why or why not? (2 marks) INote: focus on illustrating the logic of your thought process. 2) Assume that you set overall materiality at $80,000 and that you have decied to calculate specific materiality - prepare the calculation. (1/2 mark) 3) Assume that you set specific materiality at $50,000, calculate specific performance materiality. (1/2 mark) Bin Burger Bar (BBB) is a rapidly expanding chain of gourmet burger and beer restaurants that has been operating throughout the lower mainland and Vancouver Island for over 12 years. BBB is a family owned business that employs over 195 staff in its 14 locations. BBB is owned by Angus Mann whose passion for cooking is evident in the unique burger topping he offers. To keep pace with changing customer preferences, BBB has been providing its customers with gluten free meal options. As BBB doesn't open for breakfast, it is also able to provide gluten free cooking lessons in the mornings to those who suffer from intolerance to gluten. For the past four years, BBB has been the recipient of an annual grant from the Canadian National Celiac Society (Society), a not-for-profit organization dedicated to education and awareness of gluten intolerance. The Society requires that grant recipients spend the funds on specific activities. In addition, the Society requires recipients to produce audited financial statements on an annual basis to evaluate their financial health. Angus is very proud of BBB's profitability and growth. Angus' success, in part, is due to his strong financial management skills. He would also like to open three more burger restaurants next to community colleges over the next three years. To finance this expansion, BBB is applying for a long-term loan from the Duncan Credit Union. Extracts from BBB's annual financial statements are as follows: Revenue $ 7,890,000 Education and awareness training $250,000 Net income before tax $ 4,600,000 Total assets $11,700,000 Accounts receivable $ 885,000 Inventory $ 3,875,000 Accounts payable $1,025,000 Additional information: . A $150.000 bonus based on income was paid to BBB's management team in the last fiscal year due to its extraordinary contribution of opening up three new burger bars in the year. During the year, in an effort to generate cash for the expansion, BBB sold a tract of land located in Langford. The gain on the sale of the land was $480,000. BBB has been audited for many years by Lansdown and Interurban, LLP. 1. Who are the primary users of the financial statement and what is important to them (their strategic objectives)? List and discuss no more than three users. 2. Based on your user analysis (above), discuss what financial statement base you will use to determine materiality, what the relevant range is for this base and why you would chose an amount at the lower or higher end of the range in this situation. [Note: focus on illustrating the logic of your thought process.] 3. Assume that you select profitability as the relevant base to calculate materiality. Calculate materiality (assume the relevant percentage is 10%) - show your calculation. Assume that you establish that overall materiality is $100O,000. 1) Calculate performance materiality. 2) Describe why the auditor will set performance materiality. 1) If you were the auditor of BBB, discuss whether you would calculate performance materiality - why or why not? (2 marks) INote: focus on illustrating the logic of your thought process. 2) Assume that you set overall materiality at $80,000 and that you have decied to calculate specific materiality - prepare the calculation. (1/2 mark) 3) Assume that you set specific materiality at $50,000, calculate specific performance materiality. (1/2 mark) Bin Burger Bar (BBB) is a rapidly expanding chain of gourmet burger and beer restaurants that has been operating throughout the lower mainland and Vancouver Island for over 12 years. BBB is a family owned business that employs over 195 staff in its 14 locations. BBB is owned by Angus Mann whose passion for cooking is evident in the unique burger topping he offers. To keep pace with changing customer preferences, BBB has been providing its customers with gluten free meal options. As BBB doesn't open for breakfast, it is also able to provide gluten free cooking lessons in the mornings to those who suffer from intolerance to gluten. For the past four years, BBB has been the recipient of an annual grant from the Canadian National Celiac Society (Society), a not-for-profit organization dedicated to education and awareness of gluten intolerance. The Society requires that grant recipients spend the funds on specific activities. In addition, the Society requires recipients to produce audited financial statements on an annual basis to evaluate their financial health. Angus is very proud of BBB's profitability and growth. Angus' success, in part, is due to his strong financial management skills. He would also like to open three more burger restaurants next to community colleges over the next three years. To finance this expansion, BBB is applying for a long-term loan from the Duncan Credit Union. Extracts from BBB's annual financial statements are as follows: Revenue $ 7,890,000 Education and awareness training $250,000 Net income before tax $ 4,600,000 Total assets $11,700,000 Accounts receivable $ 885,000 Inventory $ 3,875,000 Accounts payable $1,025,000 Additional information: . A $150.000 bonus based on income was paid to BBB's management team in the last fiscal year due to its extraordinary contribution of opening up three new burger bars in the year. During the year, in an effort to generate cash for the expansion, BBB sold a tract of land located in Langford. The gain on the sale of the land was $480,000. BBB has been audited for many years by Lansdown and Interurban, LLP. 1. Who are the primary users of the financial statement and what is important to them (their strategic objectives)? List and discuss no more than three users. 2. Based on your user analysis (above), discuss what financial statement base you will use to determine materiality, what the relevant range is for this base and why you would chose an amount at the lower or higher end of the range in this situation. [Note: focus on illustrating the logic of your thought process.] 3. Assume that you select profitability as the relevant base to calculate materiality. Calculate materiality (assume the relevant percentage is 10%) - show your calculation. Assume that you establish that overall materiality is $100O,000. 1) Calculate performance materiality. 2) Describe why the auditor will set performance materiality. 1) If you were the auditor of BBB, discuss whether you would calculate performance materiality - why or why not? (2 marks) INote: focus on illustrating the logic of your thought process. 2) Assume that you set overall materiality at $80,000 and that you have decied to calculate specific materiality - prepare the calculation. (1/2 mark) 3) Assume that you set specific materiality at $50,000, calculate specific performance materiality. (1/2 mark)
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A dynamic vibration absorber is shown in Figure P2.2. This system is representative of many situations involving the vibration of machines containing unbalanced components. The parameters M2 and kl2...
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For the following transfer functions, sketch the Bode plots, then verify with the bode function: 1000 (s + 10)(s + 100) s + 100 (s + 2)(s + 25) G(s) = G(s) = s2 + 2s + 50 s 6 (s 3)(s2 12s 50) G(s)-
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Consider the multiple linear regression model fit to the baseball data in Problem 3.41. Problem 3.41 Consider the 2016 major league baseball data in Table B.22. While team ERA was useful in...
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Consider the simple linear regression model fit to the rental price data from Problem 2.36. Data From Problem 2.36 Table B.24 contains data on median family home rental price and other data for 51 US...
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Consider the multiple linear regression model fit to the rental price data in Problem 3.42. Problem 3.42 Table B.24 contains data on median family home rental price and other data for 51 US cities....
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