You complete procedures over the Inventory and find exceptions totaling $40K. The established materiality threshold is $30K.
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Question:
You complete procedures over the Inventory and find exceptions totaling $40K. The established materiality threshold is $30K.
Answer the following:
As is (without making adjustments), is the balance fairly stated? If not, what needs to be done for the account to be fairly stated?
- You discuss the adjustments above with management and they decide they do not want to make the adjustments. As the $40K is over materiality (i.e. a material difference), does this impact the audit opinion over the financial statements, and if yes, how?
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
Posted Date: