1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
marishachu [46]
2 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]2 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.

Andreyy892 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.

You might be interested in
____________ refers to a consolidated network of business leadership whose concerns go beyond narrow decision-making within sing
sertanlavr [38]

Answer:

A. Institutional Capitalism

Explanation:

Institutional capitalism is the phenomenon whereby large institutions holds large share of the capitalistic enterprise. Capitalism in itself has to do with private companies having their own ownership of the production process. In this case, the capitalistic enterprise is done on the basis of institutional shareholding.

8 0
3 years ago
Compare and contrast John Keats’s “To Autumn” and Susan Hartley Swett’s “July.” In your response, make sure you include the answ
Vera_Pavlovna [14]
The principle is the loan amount so it would be $1,000.
Hope it helps!
6 0
2 years ago
Leonore's Luxury Leather Footwear Corp. conducted a SWOT analysis and determined that at least 57% of consumers would demand hig
FinnZ [79.3K]

Answer: Forecast.

Explanation:

The predicted increase in sales of of the Leonore's Luxury Leather footware is an example of a forecast of future events. A forecast is an estimation of an event or trend that would possibly occur in the future.

3 0
3 years ago
Proctor and Gamble is the master of forming and re-forming teams for new product launches. The teams pull expertise from various
Crank

Answer:

These teams are both cross functional and project teams.

Explanation:

Cross functional team comprises of group of people who have different functional expertise and come from various aspects of organization.

These people come from different departments of the organization and work for a common goal.

Organizations often form cross-functional team for a short period for specific projects.

Here, this team is formed for the project of  product launch so it is an example of cross functional project team.

3 0
3 years ago
Read 2 more answers
To accurately determine the financial performance of a company, it is necessary to compare the company's performance ________.
ratelena [41]

To accurately determine the financial performance of a company, it is necessary to compare its performance from <u>year to year</u>.

In order to accurately determine the financial performance of a company, financial statements are used in evaluating, which include the balance sheet,  statement of cash flows, and the income statement.

Financial performance indicators are quite necessary as they are quantifiable metrics which are used to measure how well a company is doing. Some companies also hire an outside accounting firm to audit the financial statements.

Hence, it is necessary to compare the financial performance of a company from year to year.

To learn more about financial performance here:

brainly.com/question/17307055

#SPJ4

6 0
1 year ago
Other questions:
  • A management consulting team needs a team of four to analyze the operations of a new client. The team should comprise an account
    11·1 answer
  • If the marginal social benefit of consuming a good or a service exceeds the marginal private cost (A) a negative externality exi
    8·1 answer
  • In spending all his income on beer and pizza, Fred finds that the marginal utility of the last pizza he consumed is 8, and the m
    8·1 answer
  • Other things the same, as the price level decreases it induces greater spending on a. both net exports and investment. b. net ex
    8·1 answer
  • You just won a prize that will pay you $800 today and $500 a year for the next three years. Which is the correct formula for com
    9·1 answer
  • The term "financial distress costs" includes which of the following? I. Direct bankruptcy costs II. Indirect bankruptcy costs II
    9·1 answer
  • 1. What do you understand by footprinting in ethical hacking?
    13·1 answer
  • Paige noted that she disbursed $7,847 in payments for operations in her travel agency and received $7,162 in cash receipts for s
    8·1 answer
  • When a country imposes tariffs, it is likely to cause
    9·2 answers
  • In a sweezy oligopoly, the profit-maximizing level of output occurs where:_____.
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!