Discuss adjustments above with management

Assignment Help Financial Accounting

Reference no: EM133208283

You complete procedures over the Inventory and find exceptions totaling $40K. The established materiality threshold is $30K. Answer the following -

1. As is (without making an adjustments), is the balance fairly stated? If no, what needs to be done for the account to be fairly stated?

2. 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?

Reference no: EM133208283

Questions Cloud

Transaction be entered in enter bills section : Would this transaction be entered in the "enter bills" section of Quick books? I'm confused. We didn't actually receive a bill but is this where I would enter i

Calculation made by partner rather than partnership : Election or calculation made by the partner rather than the partnership?

Controls of stockholders equity transactions : When discussing controls of stockholders' equity transactions, an auditor would expect to see the following control in place

Operates key investment banking businesses : The US broker-dealer that operates key investment banking businesses and the entity that operates Cards and Payments in the US.

Discuss adjustments above with management : You discuss the adjustments above with management and they decide they do not want to make the adjustments.

Planning stage of the audit : During the planning stage of the audit, the engagement assessed the risk of material misstatement as low.

According to generally accepted accounting principles : According to generally accepted accounting principles, a full set of financial statements

Company temporary telecommuting arrangement : Explain using four points how the company's temporary telecommuting arrangement would affect the security of the company's data.

Learning of allegation and investigation : Outline and explain at least 5 general procedures Calanday can perform after learning of the allegation and investigation.

User Account

All Pages