Why might certain trial balance amounts be projected when considering planning materiality?
Review Exhibits 1 and 2; audit memos G-3 and G-4; and audit schedules G-5, G-6 and G-7. Based on your review, answer each of the following questions:
Planning for an audit is normally conducted well before the financial statement audit year is completed.
Early planning helps the auditor expeditiously perform the audit and ensure that sufficient competent
evidence is collected. As part of the planning process the auditor is required to prepare a written audit
program (or set of audit programs) that establishes audit procedures to be performed during the
audit engagement. When establishing audit procedures the auditor must consider the risk of material
misstatement. Materiality is a relative concept that is influenced by the magnitude of reported financial
statement amounts. Therefore, to establish materiality thresholds for the current year audit the auditor
should have expectations of year-end amounts.
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All rewards that can be classified as monetary payments and in-kind payments constitute the ______ component of the compensation system.
A. compensation B. noncompensation C. equity D. non-salary
Which sales management tool shows a salesperson which customers and prospects to see during the next 12 months and in which months, as well as which activities to carry out?
a. time-and-duty analysis b. sales force automation systems c. annual call plan d. sales quota plan e. positive incentives plan
Which of the following states that a company must perform strictly proper accounting only for items that are significant to the business's financial statements?
A) conservatism B) materiality concept C) disclosure principle D) consistency principle
Which of the following is not a step in the managerial decision-making process?
A. Identify the decision problem. B. Evaluate the costs and benefits of the alternatives. C. Calculate the payback period. D. Determine the decision alternatives.