You are working on the audit of PTG Ltd. Based on your analysis of the company's past
Fantastic news! We've Found the answer you've been seeking!
Question:
You are working on the audit of PTG Ltd. Based on your analysis of the company's past results and last year's sales, you estimate that the company will have warranty expense of $400,000 for the year. The company, however, has estimated that only $350,000. You know that materiality for the audit is much larger than the difference than the difference in the company's estimate. What should you do in this case?
Related Book For
Auditing a risk based approach to conducting a quality audit
ISBN: 978-1133939153
9th edition
Authors: Karla Johnstone, Audrey Gramling, Larry Rittenberg
Posted Date: