Question: Please help me answer this question before 11:30pm Please!!!1 Requirement e. Assume that $1.600.000 is considered material for auda planning purposes for 2016. Do any

 Please help me answer this question before 11:30pm Please!!!1 Requirement e.Assume that $1.600.000 is considered material for auda planning purposes for 2016.Do any of the fluctuations in the computed ratios indicate a possblematerial misstatemen? e n by cale at g the potential is serment Please help me answer this question before 11:30pm Please!!!1

Requirement e. Assume that $1.600.000 is considered material for auda planning purposes for 2016. Do any of the fluctuations in the computed ratios indicate a possble material misstatemen? e n by cale at g the potential is serment in oss margn and en ng n entory besed 0 potential misstaernent to the nearest tenth of a m ion. ..) the fluctua ons n te t osas calculated in pa t a tart by deter ing the potential misst terment of0ss ma n or 2016 o nd the change in gross mar percentage to he nearest tenth percent. X.X56 Round the Change in gross Potential magn % from 2015 to 2018x 2016 salesofgross margin milion million Now calouate the potent al misstatement of 2016 endng invantory by comp eting the caiculaton ba ow. (Round any interim calculations and your tinal answer to one decimal place, XX) Potontal 2018 Ending nventory 2016 Ending inventory estimated using 2015 inventory misstatement of 2015 Invontory as currently repcrted anding 2016 Cost of goods sold milion ( tumover nventory milon j Do any of the luctuations in the computed ratios indicate a poss ble material misstalement? Requirement d. What shoud the audtor do to determine the actual cause of ihe changes? O A The auditor need not take any additional action as the potential misstatement form the fluctusions in the ratios do not indicate a material financial misstaterment B. The auditor should ascuss tne two changes with the dient and 00ain a reasonabe explanaton for tham. He or sno should then perform aporopnato procedures to verty the valcity of the oplanabon. O G. The auditor should considering issuing a quaifed opirion in the audit repert of the 2016 financial statements O D. None of the above Requirement e. Assume that 31.800,000 is considered material for auda planning purposes for 2016. Do any of the lucuations in the computed ratios indicate a possible material misstatement? egn by calculat g the potensa misstatement in gross margin and en ng n entory based on the f potential misstatement to the nearest tenth of a milion, Xx.) ua on5 in the ratos as a ulated n parta art by dete m nng e po ena misstatement o gross ma n or 201 ound the ch ge n go s ma n percentage o he nearest enth per t X) % Round the Change in gross margin % Potential from 2015 to 2016x % 2016 salesof gross margin x mlion milion Now calouiate the potential misstaiement of 2016encing inventory by comp cting the calculation below. (Round any interim calculations and your final answer to cne decimal place, XX.) Potontial 2016 Ending nventory as ourrently 2018 Ending inventory estimered using 2015 invenory misstatement of 2016 Invantory turnover rapcred 2016 Coat of gaods sold ) inventory milion - milion Do any of the Auctuations in the computed ratos indicate a possible material misstatement? Both of the potantial msstatoments as caloulated above indicato a possibo material misstacoment. Nathor of the potontal miatatements as caloulacod abovo are matorial The potental missta:oment of ancing inventory, but not af gross margn, indicates a pcsaitie matorial misstatement. The potental missta:oment of groas margn, but not of anding inventory, incicates a pcatle matorial misstatement ndicate a material fnancial misstatement hould then perform appropriate procedures to verify the vaidity of the explanation

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