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Title: The auditor has set materiality at XYZ Company of $50,000 based upon a percentage of net assets. The ... Post by: npeelman on Jul 19, 2017 The auditor has set materiality at XYZ Company of $50,000 based upon a percentage of net assets. The company currently has a small profit (only $3,500). Which of the following items would the auditor most likely consider to be material and request an account balance adjustment?
A) a misclassification between accounts receivable and accounts payable of $10,000 B) incorrect allocation of a note payable to current rather than long term C) poor wording in a note to the financial statements, making it a bit difficult to understand D) an understatement of depreciation expense, which would increase depreciation by $5,000 Title: Re: The auditor has set materiality at XYZ Company of $50,000 based upon a percentage of net assets. ... Post by: victrox on Jul 19, 2017 Content hidden
Title: Re: The auditor has set materiality at XYZ Company of $50,000 based upon a percentage of net assets. The ... Post by: npeelman on Jul 24, 2018 Thanks man
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