Question: Explain why Ling set performance materiality for cash at the lowest amount. A . Cash can be completely audited. B . Typically , there are

Explain why Ling set performance materiality for cash at the lowest amount.
A.
Cash can be completely audited.
B.
Typically, there are no misstatements in cash.
C.
The evidence to support the cash balance is mostly objective versus subjective.
D.
All of the above.

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!

Q:

Requirement c. Explain why Ling set performance materiality for inventory at a lower amount as compared to accounts receivable, PP&E, and other assets. A. Inventory can be completely audited. B....

Q:

Requirement c . Explain why Ling set performance materiality for inventory at a lower amount as compared to accounts receivable, PP&E , and other assets. A . Inventory can be completely audited. B ....

Q:

8-35 (Objective 8-7) Ling, an audit manager, is planning the audit of Modern Technologies, Inc. (MT, Inc.), a manufacturer of electronic components. This is the first year that Lings audit firm has...

Q:

Ling, an audit manager, is planning the audit of Modern Technologies, Inc. (MT, Inc.), a manufacture of electronic components. This is the first year that Ling's audit firm has performed the audit...

Q:

Problem 7-31 Ling an audit manager, is planning the audit of Modern Technologies, Inc. (MT, Inc.), a manufacturer of electronic components. This is the first year that Ling's audit firm has performed...

Q:

Using your preliminary analytics for Problem 4.56, identify each significant account and disclosure. Using Exhibit 4.12 as a guide, for each significant identified in #1 above, list three things that...

Q:

Ling, an audit manager, is planning the audit of Modern Technologies, Inc., (MT, Inc.) a manufacturer of electronic components. This is the first year that Lings audit firm has performed the audit...

Q:

Explain why decisions about acceptable audit risk, inherent risk, the preliminary judgement about materiality, and performance materiality should be made early in the audit during the planning phase?...

Q:

Assume that you are preparing to confirm accounts receivable at December 31, 2022, which is one month prior to the fiscal year-end of January 31, 2023. The book value of gross accounts receivable is...

Q:

Leo Lorenzo & Sons Ltd. (LLS) is an owner-managed machinery manufacturer that specializes in producing small electric utility tractors for commercial use in Winnipeg, Manitoba. Leo Lorenzo, the sole...

Q:

Evaluate each of the following proposals for reform in terms of the material discussed in this chapter: (a) Linking all spending programs to visible tax hikes (b) A balanced-budget amendment...

Q:

Near the Sawtooth Mountains in central Idaho, the city of Stanley is looking at developing its geothermal resources. It is to make the long, cold winters pass a bit more conveniently (hot tubs for...

Q:

A coupon bond that pays interest of 6 % annually has a par value of $ 1 , 0 0 0 , matures in 5 years, and is selling tod $ 7 7 8 . The actual yield to maturity on this bond is 9 7 2 % ? new 7 8 9 % 1...

Q:

Hugo decides to buy his Christmas gifts on Black Friday. To simplify his life, he is giving his 10 closest friends scarves for Christmas and everyone else Christmas cards. Hugo is willing to pay up...