Question: When a benchmark approach is used to set materiality at the financial statement level, why are different benchmarks used for different types of entities, or

When a benchmark approach is used to set materiality at the financial statement level, why are different benchmarks used for different types of entities, or companies in different entities?

Step by Step Solution

★★★★★

3.44 Rating (167 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

When a benchmark approach is used to set materiality at the f... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Document Format (1 attachment)

395-B-A-A-A-N (3981).docx

120 KBs Word File

Students Have Also Explored These Related Auditing Questions!

What is the purpose of evidence collected during an ICFR audit?

What services that the auditor performs for an audit client may assist in scoping the audit engagement?

What are the wrap up steps of the audit that are included in the audit plan?

State the factors that you considered to determine the appropriate measurement base and percentage to determine planning materiality. Measurement Base? Percentage? I need to answer what is in yellow....

In this mini-case you will determine overall materiality as well as tolerable misstatement amounts for balance sheet accounts of EarthWear Clothiers, Inc. Most auditing firms use a simple approach...

Reference the Excel file containing financial information from footnote disclosures and substantive analytical procedures using data analytics from your instructor. PharmaCorp will be used as the...

Reference the Excel file containing financial information from footnote disclosures and substantive analytical procedures using data analytics from the Module 8 folder. PharmaCorp will be used as the...

Hello again, this is another class and I need your help again. I misunderstood the start date of the class so I'm a bit late for this first week so I'm sorry for having to ask you to finish some of...

Q1 Cloud 9 Ltd. December 31, 2020 Setting materiality Users Users Financial statement area of most concern to the user Cloud 9 company Concerning of growing marketing and Reflected by revenue Bank...

Consider two different assets. Asset A has a mean expected return of 6% with a standard deviation of 22%. Asset B has a standard deviation of returns of 32%. What should be the mean expected return...

The equivalent annual worth of an existing machine at American Semiconductor is estimated to be $-70,000 per year over its remaining useful life of 3 years. It can be replaced now or later with a...

Research the Web for service-level agreements of two different providers of cloud services and compare these based on availability, security, and privacy. How do the agreements differ? Are the...

Explain the behaviors necessary for providing effective feedback.

How is the atomic number of an atom determined?

At a computer manufacturing company, the actual size of computer chips is normally distributed with a mean of 1 centimeter and a standard deviation of 0.1 centimeter. A random sample of 16 computer...

I need help with this homework question A store manager wanted to know if there was any relationship of sales dollars to shelf space allocated . In a random sample of 12 different layouts resulting...

3. There is a semi-batch reactor with 100 L X solution at a concentration of 2 mol/L. Inert solution (I) at a concentration of 0.5 mol/L is sent to this reactor at a rate of 0.75 L/min. Reaction...