Auditor finds one receivable that is overstated

Assignment Help Auditing
Reference no: EM13886422

1.Assume materiality for the financial statements as a whole is $100,000 and performance materiality for accounts receivable is set at $40,000. If the auditor finds one receivable that is overstated by $55,000, what should the auditor do?

Reference no: EM13886422

Questions Cloud

Long hydrofoil with chord length : A 2.2-m-long hydrofoil with chord length 50 cm operates 40 cm below the water's surface with an angle of attack of 4-. For a speed of 15 m=s determine the drag and lift and decide if cavitation exists on the hydrofoil.
Auditor might set a lower level of performance : 1.Provide two examples of when an auditor might set a lower level of performance materiality for a particular class of transactions, account balance, or disclosure.
What is an rfp and how is this different from an rfi : What are the differences between the time-and-arrangements, fixed-price, and value-added contracts for outsourcing? What is an RFP? How is this different from an RFI
Diameter high-tension wires : A 10-C wind blows over 6-mm-diameter high-tension wires. Determine the range of velocities over which vortex shedding occurs. Could the shedding frequency be heard?
Auditor finds one receivable that is overstated : If the auditor finds one receivable that is overstated by $55,000, what should the auditor do?
What might motivate management to overstate fixed assets : What might motivate management to overstate fixed assets? What other factors should the auditor consider when assessing fraud risk related to long-lived assets?
What are any disadvantages of capital budgeting with hedging : What are any disadvantages of capital budgeting with hedging in the international business environment and how to mitigate these? - 1 Page and Minimum Three different sources
Amount of evidence the auditor must accumulate : What is the effect on the amount of evidence the auditor must accumulate when inherent risk is increased from medium to high for an audit objective?
Estimate the drag on the tree : A blue spruce pine tree has the shape of a triangle which is 15 cm off the ground. The triangle has a maximum diameter of 6 m and is 10 m tall. Estimate the drag on the tree if it is exposed to a 25 m=s wind. Use CD¼ 0.4 in your calculations.

Reviews

Write a Review

Auditing Questions & Answers

  Relationship between audit risk and materiality

What is the relationship between audit risk and materiality in auditing and if you were an audit partner planning an audit, how would you evaluate the risk of your client?

  Auditing assessing risk factors

When assessing risk factors due to errors and fraud, what are some types of examples of these? Have you seen this occur in the workplace past/present/familiar with a situation?

  Bank reconciliation for xyz company

Prepare a bank reconciliation for XYZ Company at September 30 using the following informatiom:

  What kind of audit report unqualified opinion adverse

what kind of audit report unqualified opinion adverse opinion qualified opinion disclaimer of opinion should the

  Discuss the factors which would influence

Briefly outline the requirements of the UK version of ISA 700/ 750/ 706 and discuss the factors which would influence you as the external auditor in forming an opinion on the financial statements of Home Retail Group plc for 2011.

  Review and analyze the customer satisfaction trends

What if a client approaches you with an engagement request that you are not sure your CPA firm provides? Knowing which services are offered and how they are performed helps to ensure you provide your clients with the services they need.

  Explain the purposes and reasons for public accounting firms

Explain the purposes and reasons for public accounting firms to perform an integrated audit. Address the Sarbanes-Oxley Act (SOX) and explain corporate governance and its relation to integrated audits.

  Responsibilities of auditor

This posting contains an APA formatted MS Word file containing information in regards to the responsibilites of an auditor in the performance of their duties; including their responsibility for discovering of subsequent events occurring after comp..

  Bank reconciliation of gift shop

You are the newly hired accountant for The Gift Shop. The owner has just received the December 31, 2008 bank statement and has asked you to prepare the monthly bank reconciliation.

  Question-expected value

What repayment will you receive under each of the two outcomes? What is the expected value of these repayments? Now assume that Kinkus has issued $15 million of new debt to another party, which is also due at the same time that owed to you. Kinkus ..

  Events review of items for disclosure

An auditor is concerned with the balance sheet as of a particular date, such at 12/31. Sometimes events occur or become know subsequent to the balance sheet date and before the issuance of the audit report.

  Audit opinion and the opinion on internal controls

Is this a subsequent event or a subsequent discovery of facts?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd