If materiality judgments change during the audit opinion formulation process, what happens to previous audit decisions that were based on the evidence obtained using the initial material setting?
a. They need to be reassessed.
b. They need to be noted in the footnotes.
c. No action is required.
d. None of the above.
a
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A company's return on equity is equal to ________
A) net profit divided by retention equity B) net profit divided by value equity C) net profit divided by customer's equity D) net profit divided by owner's equity E) net profit divided by company's liability
In regards to benchmarking, which of the following statements is correct?
A) The two main types of benchmarks in financial statement analysis include benchmarking against prior year of the same company and benchmarking against a key competitor. B) Benchmarking is the practice of comparing a company with information provided by the Financial Standards Accounting Board. C) Risk Management Association provides common-size statements for most industries. D) It is not helpful to provide common-size percentages in a graphical manner.
What is the maximum inventory level?
A company distributes repair parts for high-end appliances. The annual demand is 81,000 and the company operates 300 days per year. The annual carrying cost is 20% of the item cost, which is $500. The ordering cost is estimated at $60 and the shortage cost is $150.
The Laplace criterion will reach the same decision as the Minimax Regret criterion when the payoff table contains expenses instead of revenues
Indicate whether the statement is true or false