Explaining the concept of materiality

Assignment Help Accounting Basics
Reference no: EM131633021

Question - Assume you are a staff accountant working for Kim & Kirkpatrick, Inc. (K&K), a small publicly traded company that will soon have its financial statements audited by a local CPA firm, Young, Mitchell, and Gregory. Eleanor Lee, a rising manager at K&K, expects to work closely with the auditors. Ms. Lee has a general business background and several years experience working for K&K, but her knowledge of auditing is limited. She sees you in the hall one day, and during the conversation, she tells you she is confused about a term she's heard of that will somehow affect the upcoming audit. The term she refers to is materiality. You talk with her briefly about materiality, but as she walks away she still seems to be a little confused. Later she asks you to write her a memo explaining the concept of materiality and possible ways it might affect the audit of K&K. Write the memo, inventing any details you need to make your discussion clear and readable.

Reference no: EM131633021

Questions Cloud

Concept be applied in service environment : What are the benefits of JIT inventory management? Give an example of how JIT can be used. How can the JIT concept be applied in a service environment?
Identifying market niches in the age of big data : What are the answers to the Identifying Market Niches In The Age Of Big Data case study questions?
Relating to someone violating business ethics : Find two newspaper or magazine articles from the past several months relating to someone violating business ethics
What is meant by the term fiscal federalism : What is meant by the term fiscal federalism? How has this affected the scope of federal powers?
Explaining the concept of materiality : Later she asks you to write her a memo explaining the concept of materiality and possible ways it might affect the audit of K&K
Relationship between union and employer : In your opinion, must the relationship between union and employer during the initial phases of union emergence be adversarial?
Require from them in terms of operational competencies : What does that require from them in terms of operational competencies and what process choices allow them to support this position?
How vital was expert testimony to the case : How vital was expert testimony to the case? How would you as the prosecutor have prepared the expert witnesses for trial?
Discuss the purpose of using diagnostic instrument : Discuss the purpose of using a diagnostic instrument/model to help manage change.

Reviews

Write a Review

Accounting Basics Questions & Answers

  Predicted salvage value of the system

A new operating system for an existing machine is expected to cost $520,000 and have a useful life of six years. The system yields an incremental after-tax income of $150,000 each year after deducting its straight-line depreciation. The predicted ..

  What is the minimum price per unit

Down Home Jeans Co. has an annual plant capacity of 64,700 units, What is the minimum price per unit that would produce a positive contribution margin

  The budget of four companies yield the following

The budget of four companies yield the following information: Fill in the blanks for each missing value. Which company has the lowest breakeven point in sales dollars? What causes the low breakeven point?

  Prepare a note amortization schedule for the first year

(Negative Amortization) Good-Deal Inc. developed a new sales gimmick to help sell its inventory of new automobiles. Because many new car buyers need financing, Good-Deal offered a low down payment and low car payments for the first year after purc..

  Describes the tablet stores purchases and payments process

Draw a UML class diagram that describes the Tablet Store's purchases and payments process and determine the Tablet Store's accounts payable

  Prepare a general fund statement of revenues

The following General Fund information is available for the preparation of the financial statements for the city of Eastern Shores for the year ended September.

  Determine the proper accounting treatment

Determine the proper accounting treatment for each of the above costs and prepare a summary journal entry to properly record the costs

  Determining loss contingency

Orange Co. can estimate the amount of loss that will occur if a foreign government expropriates some of the company's asset in that country. If expropriation is reasonably possible, a loss contingency should be:

  Job no 636 was the only job in process on january 1 of the

cost flows and overhead applicationcleveland metals uses a job cost system and applies factory overhead to production

  Discuss the three alternative inventory costing methods

Botch Corp. sold 5,500 units of its product at $45 per unit in year 2011 and incurred operating expenses of $6 per unit in selling the units.

  What procedures can the irs employ to gather the information

What procedures can the IRS employ to gather the information needed to make this determination

  Suzie pays advertising of 830 to a local radio station for

tony and suzie graduate from college in may 2012 and begin developing their new business. they begin by offering

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