Assume you are testing a sample of the accounts receivables for an audit client and, with the use of monetary unit sampling, have calculated a total

Assume you are testing a sample of the accounts receivables for an audit client and, with the use of monetary unit sampling, have calculated a total estimated misstatement of $446,500. The audit team has set the tolerable misstatement threshold at $450,000 and the ending accounts receivable balance for the audit year is $2,250,000. With regard to the closeness of these dollar amounts, answer the following:

  1. Do you believe the accounts receivable tolerable misstatement amount requires a downward adjustment?
  2. In light of the testing outcome, the audit senior has decided to increase the tolerable misstatement amount to $475,000 due to the audit client’s strong financial condition and because the testing of internal controls did not present any increased control risk. How would you use your professional judgment to address this situation?
  3. Explain how you might adjust your sampling for further testing and how the use of data analytics tools could be beneficial in this type of scenario.

Share This Post

Email
WhatsApp
Facebook
Twitter
LinkedIn
Pinterest
Reddit

Order a Similar Paper and get 15% Discount on your First Order

Related Questions

1) Prepare the following consolidation and equity accounting entries for Purple Co. and its subseries and Associate for the year ended 31 December

1) Prepare the following consolidation and equity accounting entries for Purple Co. and its subseries and Associate for the year ended 31 December 20X5.                                                                 CJE1: Elimination of investment in Yellow Co.; Dr. share capital (Yellow Co.) $ 3,120,000 Dr. Retained Earnings (Yellow Co.) $ 3,510,000 Dr. Goodwill $ 1,560,000 Cr.

Handy Headphones is an Irish company that is manufacturing lightweight, flexible, Bluetooth[1] enabled and waterproof headphones. It is proving to be

Handy Headphones is an Irish company that is manufacturing lightweight, flexible, Bluetooth[1] enabled and waterproof headphones. It is proving to be very popular among people wanting to listen to music in the shower or while swimming on holiday or at community leisure centers lane swimming sessions (mainly because of their 159 price tag). Before the

Module 5: Discussion Forum In this week’s Required Readings from your course textbook, you have a specific and detailed example of hedging a forecasted for

Module 5: Discussion Forum In this week’s Required Readings from your course textbook, you have a specific and detailed example of hedging a forecasted foreign currency transaction to hedge an anticipated but not yet committed purchase of inventory using a foreign currency cash flow hedge (Case 3 on Pages 572-574) and hedging an unrecognized foreign

Hsjusbsbsbdhdhene

Hsjusbsbsbdhdhene sbsndndnjxjxjfkdjdjsisiiseiieiejrjdjiejeuieiejjeejgeygvwcwcwcxxqxfaajannsmsmsmsowlwbsvshsiwhejeowjsegheieududhtwiwowpwbwjeuebibjsiebuebeiebsuebwowbwiebeibsowbwo93hshshshhsbebsjsjshshdyehdhdhdrjrjdirbdjdjbdjdbejsebeiuwgdidhd8dbdbdjdbbdmmsjshejueusowowjw9qgwiehegeiehejeoejeiehe9ejejeheiehdidbsjduueehueehjeehsusjsienienbsgshduevgtwhwowpebdbjoabeheiwvueeksvejeenejdbuhdbeoe eiennejejejebsjisejeoejbdjdbebddonbsheeiejiejeijeje ejeieiehgeeiejeu9ewhe8hh

You should refer to the FASB Accounting Standards Codification (FASB ASC), specifically, when answering some of the questions below: For foreign-currency

You should refer to the FASB Accounting Standards Codification (FASB ASC), specifically, when answering some of the questions below: For foreign-currency related transactions, whether they are accounts receivable or accounts payable denominated in a foreign currency, describe briefly how such transactions are recorded and reported on the income statement when