What does material mean in the context of an audit

Assignment Help Financial Management
Reference no: EM132326606

Question

Material" has a different definition in accounting than it does in everyday life. What does "material" mean in the context of an audit, and who determines whether an item is material?

The response paper should be in APA format, double spaced, hand-written, numbered pages, with a cover page and references.

Reference no: EM132326606

Questions Cloud

Prepare the annual year-end adjusting journal entries at dec : Among other items, the trial balance of Filmblaster, Inc., a movie rental company, at December 31 of the current year includes the following account balances.
Benefit from economies of scope : 1. Does a firm need to diversify across different businesses in order to benefit from economies of scope?
What are the tax consequences of this transaction to frank : He owns the building and land that the company works out of himself and receives lease payments of $120,000/year for the property.
How does the materiality of an item affect the acceptable : How does the materiality of an item affect the acceptable and inherent risk borne by an audited company?
What does material mean in the context of an audit : What does "material" mean in the context of an audit, and who determines whether an item is material?
List and briefly explain six inhibitors of communication : List and briefly explain six inhibitors of communication. Define the following terms relating to communication: communication and effective communication
Why does the government consider jerrys actions fraudulent : Based on what you have read above, what was Jerry's company using as a cost driver to allocate overhead to the various jobs?
What is arnolds net passive income or loss deduction : Arnold purchased two rental properties 6 years ago. He actively participates in their management. During 2018, Arnold had income of $22,000.
What amount should mort report as net rental income for : Mort is the owner of an apartment building containing ten identical apartments. Mort resides in one apartment and rents out the remaining units.

Reviews

Write a Review

Financial Management Questions & Answers

  What is the expected price of the bond

What is the expected price of the following bond?

  What is the unlevered return on equity of the new project

Company A has a debt of $25,000,000 while its equity is $115,000,000. The beta of A's levered equity is 0.95 and the company keeps a constant debt-to- equity ratio. Company A's cost of debt is 4.35% and it bears no systematic risk. The expected retur..

  Considering expansion into related fields

Your employer, a mid-sized human resources management company, is considering expansion into related fields, including the acquisition of Temp Force Company,

  Compute annual interest rate r with continuous compounding

A City Tech student purchased a new 3D 4K HDTV on Cyber Monday that was selling for $3,500. He signed a financing deal to make a down-payment of $1,000 and then to make 24 monthly payments of $150, beginning one month from the time of purchase. Compu..

  Requires initial fixed asset investment

Cochrane, Inc., is considering a new three-year expansion project that requires an initial fixed asset investment of $1,680,000.

  Miller manufacturing lies a target debt-equity ratio

Miller Manufacturing lies a target debt-equity ratio of 55 Its cost of equity is 14 percent,

  Concerning the after-tax return on the stocks

Which statement is true concerning the one-year after-tax return on the following stocks, assuming a 40% tax rate on dividends and a 20% tax rate on capital gains: Stock A is purchased for $50, offers a 5% dividend yield, and is sold for $56; stock B..

  What were flotation costs as a fraction of funds raised

Moonscape has just completed an initial public offering. What were flotation costs as a fraction of funds raised?

  What is the equivalent annual annuity for each machine

What is the equivalent annual annuity (EAA) for each machine? Based on your EAA analysis, which machine would you recomment?

  What two components make up the cost of money for equity

What two components make up the cost of money for equity?

  Bring down the loan quickly

If you paid the bank your entire bonus of $5,000 at the end of the 12th month to bring down the loan quickly?

  What is the price changes for bond

If the market rate suddenly changes down 2%, what is the price for Bond A, and Bond B?

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