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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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iVinArrow [24]

Answer:

Option D. $10,000 is the correct answer.

Explanation:

Journal Entry for pension expenses:

Pension Expense                                  $10,000

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(To record pension expenses)

Pension expenses for the year ended is comprised of the following components of pension cost.

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Pension expenses                                  $10,000

3 0
3 years ago
What would you do when you grow up?*Career* <br> And explain why!
mart [117]

Answer:

Nursing or famous singer

Explanation:

because I want to inspire other people and make them happy.

4 0
3 years ago
Read 2 more answers
Lester Moy bought two new Michelin Tires for his car at $99.55 per tire. He was also charged $4.95 per tire for mounting, $2.65
Arte-miy333 [17]
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3 0
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In the late nineteenth century, what helped narrow the gradations of freedom amongst white Americans? a. Indentured servitude ha
ElenaW [278]

In the late nineteenth century, Judith Sergeant Murray wrote about women’s intellect being equal- this helped narrow the gradations of freedom amongst white Americans.

Option: B

Explanation:

In the late nineteenth century there was a conflict in between white Americans about the freedom. Their fight against each other graded by the help of writer and other professionals who wrote about their strong points. Judith Sergeant Murray who was an American writer and advocate wrote about women's right.

Gender discrimination, women's right, feminism was the core area of writing in Judith Sergeant Murray's work. He compared women's ability with man's, their imagination, decision making capacity, judgemental motives etc.

5 0
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Some people believe that the right of privacy should be extended to the workplace. Others feel that, on the contrary, such an ex
PSYCHO15rus [73]

Explanation:

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The ideal is for the company to have a set of well-defined policies and procedures with regard to the rights and duties of employees, as long as the policies have ethical and legal foundations, which guarantee the right to privacy and human integrity.

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