Limelite is a Joint Stock Company in Muscat, Sultanate of Oman. Limelite was established in 2012...

 

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Limelite is a Joint Stock Company in Muscat, Sultanate of Oman. Limelite was established in 2012 and has since been leading Oman Cellular Phone Accessory manufacturer, producing diverse range of cellular phone protective screens, covers and ring-holders. Recently Limelite "Patent" the "Limelite Glove" a shock resistant cover for the cellular phones. The following is the summary of the year end receivables balances of Limelite Manufacturing and the equivalent figures for the previous year. Performance materiality has been set at RO. 5,000. Customer Jamal Ahmed Shahin Mohammed Jaffar Ali Jamila Khan Nooruddin Other Customers all with balance under RO. 1,000 Jaffar Ali went into liquidation during the year. Question 3: 2016 2,500 6,000 2,000 1,000 20,500 16,600 48,600 === 2015 2,400 3,000 2,000 1,100 18,900 7,400 34,800 (i) Set out which of the above balances as a minimum, the auditor should select for listing and explain. Why? (3 Marks) (ii) Discuss the concept of Materiality Level with reference to the case let. (2 Marks) Limelite is a Joint Stock Company in Muscat, Sultanate of Oman. Limelite was established in 2012 and has since been leading Oman Cellular Phone Accessory manufacturer, producing diverse range of cellular phone protective screens, covers and ring-holders. Recently Limelite "Patent" the "Limelite Glove" a shock resistant cover for the cellular phones. The following is the summary of the year end receivables balances of Limelite Manufacturing and the equivalent figures for the previous year. Performance materiality has been set at RO. 5,000. Customer Jamal Ahmed Shahin Mohammed Jaffar Ali Jamila Khan Nooruddin Other Customers all with balance under RO. 1,000 Jaffar Ali went into liquidation during the year. Question 3: 2016 2,500 6,000 2,000 1,000 20,500 16,600 48,600 === 2015 2,400 3,000 2,000 1,100 18,900 7,400 34,800 (i) Set out which of the above balances as a minimum, the auditor should select for listing and explain. Why? (3 Marks) (ii) Discuss the concept of Materiality Level with reference to the case let. (2 Marks)

Answer rating: 100% (QA)

1The auditor should select the following balances for listing Jamal Ahmed Shahin Mohammed Jaffar Ali ... View the full answer