User Account

All Pages

How ratio analysis and industry comparisons can be useful

Assignment Help Accounting Basics
Reference no: EM133089208

Question - ISA 300 on Planning an Audit of Financial Statements states that the auditor must plan the audit work in order for the audit to be carried out effectively. Planning means developing a general strategy and detailed approach to the nature, timing and extent of the audit. Therefore, the purpose of planning is to determine the amount and type of evidence and review required to assure the auditor that there are no material misstatements of the financial statements.

Required -

a. What is meant by misstatement? Give 2 examples of misstatements.

b. Explain how ratio analysis and industry comparisons can be useful to the auditor in identifying potential risks of material misstatement at the planning stage?

c. In setting the materiality threshold, the auditor considers the size of the item; nature of the item; and the circumstances (Hayes, 2014). Explain each one.

Reference no: EM133089208

Questions Cloud

Identify possible practical methods of reducing excess stock : Identify possible practical methods of reducing excess stock levels and What can be done to make sure that work equipment is safe? Answer in 50-100 words
How must net income be adjusted to get indirect cash flows : Accounts receivable was $100,000 at the beginning of the year and $150,000 at the end of the year. How must net income be adjusted to get indirect cash
Find the total standard direct labor hours : Europa Company manufactures only one product. Find the total standard direct labor hours (SQ) in November for the output produced
Practical methods of reducing excess stock levels : Describe practices that may be involved in ‘checking calculations' as part of the process of checking and verifying stock related documentation
How ratio analysis and industry comparisons can be useful : Explain how ratio analysis and industry comparisons can be useful to the auditor in identifying potential risks of material misstatement at the planning stage
Compute equivalent units of production for direct materials : On July 31, had 5,000 liters of shampoo in process. Compute the equivalent units of production for direct materials and conversion costs for the month
What amount should be reported as a receivable : In addition to footnote disclosure, what amount should be reported as a receivable in Beni's balance sheet at December 31, 2018
Compute the internal rate of return of the investment : ABC Corporation made a net investment of P500,000 in a vending machine. Compute the internal rate of return of the investment
Considering the lean business model canvas : Considering the lean business model canvas, describe the modeling expectations between intrapreneurship and entrepreneurship.

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Theory of interest - term structure of interest rates

Term Structure of Interest Rates

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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