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marishachu [46]
3 years ago
6

An auditor has determined a $10 million materiality level for a client's balance sheet and a $3 million materiality level for th

e client's income statement. As a result, the auditor will consider items in the audit to be material if they individually or collectively could result in a misstatement of____________.
A. $6.5 million or more
B. $10 million or more
C. Unknown; impossible to determine from information given
D. $3 million or more
Business
2 answers:
wlad13 [49]3 years ago
7 0

Answer:

D. $3 million or more

Explanation:

The International Auditing Standards comments that <u> it is advised in auditing that when there are multiple materialities in an audit, using an average of the materialities will lead to an amount that will be too large for the lower materiality that has been set.</u>

Therefore in the case of this scenario, $6.5 cannot be used because it will be too large for the income statement amounts, hence the advised level is the lower materiality of $3 million.

Andreyy893 years ago
5 0

Answer:

D. $ 3 million or more

Explanation:

Since the minimum materiality amount on individual basis is $3 million for client's income statement.

Therefore, whether it is on individually or collectively identified that there is misstatement of at least $3 Million the auditor will consider it material.

They will notify appropriate authorities regarding the misstatement.

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viktelen [127]

Answer:

Average receivables = $157,500,000

Explanation:

<em>Account receivable represent the amount of credit made by a business which remain uncollected as at the reporting date. In other words, they represent the amount that customers are owing the business in respect of credit sales.</em>

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6 0
3 years ago
Use the graph to answer the question that follows.
Damm [24]

The movement from point B to point A is due to the price that companies can charge for the product decreases. Therefore the 3rd option is correct.

<h3>What is supply?</h3>

Supply is the economic concept which refers to the availability of the products and commodities in the market in order to satisfy the needs of the consumers.

According to the Graph, The prices of the commodity is decreased from $20 to $5 and output is also decreased from 200 units to 100 units which implies the decrease in the prices of the product which further implies the decrease in the level of supply.

Therefore the 3rd option is correct.

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5 0
1 year ago
Matt and alicia created a firm that is a separate legal entity and will share ownership of that firm on a 75/25 basis. which typ
Wittaler [7]
The type of <span>entity that they created if they have no personal liability for the firm's debts would be: Corporation
In case of bankruptcy, a corporation must sell all of its assets to pay up the debt. But after all assets are liquidated, the debtor couldn't seek the payment further to the corporation's owner and have to accept the residual debt as a loss.</span>
5 0
3 years ago
The advanced machinery used for limestone quarrying in a particular region leads to noise pollution and affects the hearing abil
Tanzania [10]

Answer:

A. Recent environmental research reveals that the dust from the limestone quarrying site has severely contaminated the water at a nearby lake.

Explanation:

The limestone production results in huge social effects like, noise pollution, soil pollution, which affects lives of people. And since the manufacturers or producers of limestone do not care about the social results of such production, they shall be liable to pay huge taxes.

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Accordingly high taxes as a penalty for such social destruction shall be charged.

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3 years ago
_______________ involves you imagining yourself achieving your final goal.
otez555 [7]
I’d say Outcome visualization since it involves seeing yourself achieving your goal.
3 0
2 years ago
Read 2 more answers
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