Anne Aylor‚ Inc. Determination of Planning Materiality and Tolerable Misstatement MARKS. BEASLEY· FRANK A. BucKLEss ·STEVEN M. GLOVER· DouGLAS F. PRAWITT LEARNING OBJECTIVES After completing and discussing this case you should be able to [1] [2] Determine planning materiality for an audit client Provide support for your materiality decisions [3] Allocate planning materiality to financial statement elements INTRODUCTION j-- Anne Aylor‚ Inc. (Anne Aylor) is a leading national
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Planning Materiality c a S eS inc lu de d in t hiS Se ction 7 . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7.1 Anne Aylor‚ Inc. 229 Determination of Planning Materiality and Tolerable Misstatement ot he r c aSe S t h at diScuSS topicS related to thiS Section 5.6 Scoping and Evaluation Judgments in the Audit of Internal Control over Financial Reporting 12.1 EyeMax Corporation . . Evaluation of Audit Differences . . . . . . . . . . . . . . . . . . . . . . . Sarbox
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Accounting 732 Audit II 9/25/2012 Anne Aylor Inc. A. Why are different materiality bases considered when determining planning materiality? Different materiality bases are considered when determining planning materiality because the magnitude and nature of financial statement misstatements or omissions have different influences on different financial statement users. For example‚ investors are more interested in the accuracy of numbers involving net income because they are mainly concerned
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Case 2 [1] A. Financial information is prepared for multiple users for different purposes and thus not all elements of the financial statements are equally relevant to all users. B. Materiality is a relative rather than an absolute concept. The materiality threshold that will influence users of the financial statements will vary depending on the context in which the entity operates. C. Auditors must design the audit to find the smallest misstatement that would influence users of the
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[1] Review Exhibits 1 and 2; audit memos G 3‚ and G 4; and audit schedules G 5‚ G 6-1‚ and G 6-2. Based on your review‚ answer each of the following questions: [a] Why are different materiality bases considered when determining planning materiality? Financial information is prepared for multiple users for different purposes and thus not all elements of the financial statements are equally relevant to all users. For example‚ stockholders will be more concerned with long-term revenue and profit growth
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| Week 6 Case Study | Case 7.1 | | Blake Ashmore | 8/16/2013 | | 1a. Materiality needs to be based differently when determining planning materiality because every business is different and every department in the financial statements need to be address in different ways. Also‚ certain departments can have a higher materiality rate as others; such as current assets or current liabilities. Net revenues and total assets is an area of the financial statements where materiality should
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Case 7.1 Anne Aylor. Inc Planning Materially Assessment AU-C 300 Planning an Audit: Involvement of Key Engagement Team Members Preliminary Engagement Activities Planning Activities Determining the Extent of Involvement of Professionals Additional Considerations in Initial Audit Engagements Documentation Q1. a. Different users for different purposes to use financial information. Not all parts of the financial statements are equally relevant to all users. For
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young member of the Frank family named Anne Frank. Anne Frank kept a diary of the family’s experiences while living in the secret annex. Anne Franks diary and the detailed trials her and her family experienced are known and read by people all over the world. Anne Franks and her diary have
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Anne Orthwood’s Bastard tells the story of John Kendall and Anne Orthwood and their bastard son‚ Jasper. It began with John and Anne’s meeting and ended when Jasper came of age. This book gave a detailed description of sex and law in early Virginia and how it differed from the law in England at the time. Two of the main themes seemed to be respectability and social mobility. During the 1660’s and 1670’s in Virginia‚ respectability and social mobility were two of the most important aspects people
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Anne Williams-Isom is the current Chief Executive Officer for the Harlem Children’s Zone‚ before she served in this position‚ she spent five years as HCZ’s Chief Operating Officer. As COO‚ she oversaw all programs in HCZ’s cradle-through-college pipeline‚ under her leadership‚ she was able to improve the organization and add new ideas to help programs move forward into better ways of learning and having fun outside their classroom. In 1991‚ HCZ opened its first Beacon school‚ a year-round after-school
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