Question 15 4 points Save Answer Auto+ is a privately owned manufacturer of small motors for lawnmowers, tractors, and snowmobiles. The components of its financial statements are (1) income before taxes = $41 million, (2) total assets = $1,050 million, and (3) total revenues = $1,550 million Required: a. Determine: a. The overall materiality assuming that the company use 5% to calculate the overall materiality ( 1.5 marks] Tolerable misstatement if the company use 50% to calculate the tolerable misstatement. [1.5 marks] Justify your decisions. b. During the course of the audit, Autot's CPA firm detected two misstatements that aggregated to an overstatement f income of $2.25 million. Evaluate the audit findings. Justify your decisions. [1 mark] TTT Arial 3 (12pt) Path:p Words:0 Question 15 4 points Save Answer Auto+ is a privately owned manufacturer of small motors for lawnmowers, tractors, and snowmobiles. The components of its financial statements are (1) income before taxes = $41 million, (2) total assets = $1,050 million, and (3) total revenues = $1,550 million Required: a. Determine: a. The overall materiality assuming that the company use 5% to calculate the overall materiality ( 1.5 marks] Tolerable misstatement if the company use 50% to calculate the tolerable misstatement. [1.5 marks] Justify your decisions. b. During the course of the audit, Autot's CPA firm detected two misstatements that aggregated to an overstatement f income of $2.25 million. Evaluate the audit findings. Justify your decisions. [1 mark] TTT Arial 3 (12pt) Path:p Words:0