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Materiality (AU-C 320, AS 2105) – Materiality in Planning andPerforming an Audit Using the...

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Accounting

Materiality (AU-C 320, AS 2105) – Materiality in Planning andPerforming an Audit Using the 12/31/14 Apollo trial balancescalculate preliminary materiality for the financial statements as awhole using the following approaches: 5.0% of pre-tax income 0.5%of total assets 1.0% of equity 0.5% of total revenues Based on yourengagement planning analysis, which preliminary materiality measurewould you recommend?

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The auditor shall determine performance materiality for purposes of assessing the risks of material misstatement and determining the nature timing and extent of further audit procedures The auditor shall revise materiality for the financial statements as a whole and if applicable the materiality level or levels for particular classes of transactions account balances or disclosures in the event of    See Answer
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In: AccountingMateriality (AU-C 320, AS 2105) – Materiality in Planning andPerforming an Audit Using the 12/31/14...Materiality (AU-C 320, AS 2105) – Materiality in Planning andPerforming an Audit Using the 12/31/14 Apollo trial balancescalculate preliminary materiality for the financial statements as awhole using the following approaches: 5.0% of pre-tax income 0.5%of total assets 1.0% of equity 0.5% of total revenues Based on yourengagement planning analysis, which preliminary materiality measurewould you recommend?

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