What is meant by using bases for setting a preliminary judgment about materiality? How will those bases

Question:

What is meant by using bases for setting a preliminary judgment about materiality? How will those bases differ for the audit of a manufacturing company and a government unit such as a school district?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Auditing and Assurance services an integrated approach

ISBN: 978-0132575959

14th Edition

Authors: Alvin a. arens, Randal j. elder, Mark s. Beasley

See More Books

Question Posted: Oct 10, 2012 07:23 AM

See More Questions

What is meant by using benchmarks for setting a preliminary judgment about materiality? How will those benchmarks differ for the audit of a manufacturing company and a government unit such as a...
What is meant by setting a preliminary judgment about materiality? Identify the most important factors affecting the preliminary judgment.
What is meant by using the marketing mix to gain the cooperation of channel members in implementing the manufacturers channel strategy?
In Problems, assume that the populations are normally distributed and that independent sampling occurred. (a) Test the hypothesis that 1 2 at the a = 0.1 level of significance for the given sample...
Let A be any n n matrix and r 0 a real number. Show that crA(x) = rncA (x/r).
In Exercises find the derivative of the function. y = sech(4x - 1)
Figure P27.46 shows the semicircular path through which charged particles travel in the magnetic field of a mass spectrometer. If the particles are oxygen ions carrying a charge of $-2 e$ and the...
Sandburg and Williams are the owners of a partnership that manufactures commercial lighting fixtures. Profits are allocated among the partners as follows: Sandburg was divorced as of the beginning of...
9. An arrow 2.5 cm high is placed at a distance of 25 cm from a diverging mirror of focal length 20 cm., Find the nature, position and size of the image formed. 10. The image formed by a convex...
No Friction is an industrial lubricant, which is formed by subjecting certain crude chemicals to two successive processes. The output of process 1 is passed to process 2, where it is blended with...
Explain why materiality is important but difficult to apply in practice.
Assume that Rosanne Madden, CPA, is using 5% of net income before taxes, current assets, or current liabilities as her major guidelines for evaluating materiality. What qualitative factors should she...
Calculate the hydrogen ion concentration in a solution that has a pH of 4.76.
Total Asset Turnover = .245 Net Income Net Sales $400,000 Equity Multiplier = 1.20 $1,300,000 What is the Return on Equity?
If you own a business, which approach to business valuation makes the most sense to you and why? If you are purchasing a business, which approach to business valuation makes the most sense and why?...
describe and correct the three error(s) in the table below: Repayment Schedule for a $1200 Loan at 12% for 12 months. Payment Number Monthly Payment Amount for Interest Amount for Principal New...
The figure below shows two blocks connected by a string of negligible mass passing over a frictionless pulley. m = 3.6 kg and 0 = 12.0. Assume that the incline is smooth. m m (a) For what value of m...
What is Costco s business model? Is the company s business model appealing? Why or why not?
Suppose X 1 , . . . , X n are independent and have distribution function F (x). Find the distribution functions of (a) Y = max{X 1 , . . . , X n } and (b) Z = min{X 1 , . . . , X n }
An item of depreciable machinery was acquired on 1 July 2009 for $120,000 by cash It is expected to have a useful life of 10 years and zero salvage value On 1 July 2012, it was decided to revalue the...
Briefy explain Porters (1980) Five Forces model.
Elias Tech (ET) is a private company founded by Sarah House and Rosa Perks. Sara and Rosa each own a 40 percent interest in the company, with the remaining 20 percent owned by a venture capitalist...
Statements of earnings and financial position for Prairie Stores Corporation are shown. REQUIRED a. Use professional judgment in determining overall materiality based on revenue, net income before...
Why is it important for the auditor to consider risk of material misstatement at the overall financial statement level?
Natural Mosaic. Natural Mosaic Company (U.S.) is considering investing Rs54,000,000 in India to create a wholly owned tile manufacturing plant to export to the European market. After five years, the...
Base Electronics buys 2,000 shares of stock in Blue Mission Company for $20 per share on January 2 of the current year. Base Electronics does not have the ability to participate in the decisions of...
Chan and Fatina are forming a partnership. Chan is investing a building that has a market value of RM80,000. However, the building carries a RM56,000 mortgage that will be assumed by the partnership....

What is meant by using bases for setting a preliminary judgment about materiality? How will those bases

Question:

Step by Step Answer:

Because materiality is relative rather than absolute ...View the full answer

Auditing and Assurance services an integrated approach

Students also viewed these Auditing questions