Briefly describe independent auditor concept of materiality

Assignment Help Case Study
Reference no: EM13343533

Part -1:

You need to prepare a memo (GA-5) addressing materiality for Apollo Shoes. Remember that the workpapers document that we are following Generally Accepted Auditing Standards. In the memo,

1. Briefly describe independent auditors' concept of materiality.

2. Describe some common relationships and other considerations used by auditors when assessing the dollar amount considered material. In other words, what are some common measures of materiality with respect to income, sales, and total assets?

3. Based upon your professional judgment and your discussion of items 1 and 2 above, determine an amount you consider to be a minimum material misstatement for Apollo Shoes and justify your recommendation in your memo.

part -2:

We need a memo (GA-6) addressing the potential for fraud for Apollo Shoes. This workpaper is necessary to document that we are following SAS 99 fraud guidance. Some things you might want to include in your memo:

• Have you noticed any "red flags" in either the minutes or your analytic procedures so far?

• Address fraud risk in general terms: types of risk (Remember that improper revenue recognition is always a "red flag."), significance of risk, likelihood of risk (what is the probability of fraud?), pervasiveness or risk (is fraud risk centralized to one function or individual or is it throughout the organization?)

• How might a fraud might be perpetrated and concealed in the entity

• Suggest ways that we might alter our audit approach to address the potential for fraud, such as assignment of personnel, predictability of auditing procedures, and examination of journal entries and other adjustments

Reference no: EM13343533

Discuss major issues and ruling in the above 2 case studies

Tesco supermarket (one of the largest supermarket chains in England) advertised Radiant washing powder on special at a reduced price of 2/11 rather than the normal price of

Are there any risks to delayed updates to gardiners system

Do you think that the more gradual implementation of online sales implemented by Gardiners is too safe? Is there a benefit to this careful, planned approach? Are there any r

Describe the motivational issues that exist

Use the questions at the end of the case study to help you construct your paper and be sure to address the following: Describe the motivational issues that exist. The basic ne

Establish goals for priority of nursing care

Identify and prioritise at least three (3) nursing problems/issues based on the health assessment data that you have identified for the person at the centre of care. Establish

Review evans and richardson

How specifically does economic of scale serves as a value for global branding? since higher volume doesn't necessarily translate into value for global acceptance of a brand

What conflicts must conoco resolve

What conflicts must Conoco resolve in deciding whether or not to develop block 16 in Ecuador's tropical rain forest.  How can Conoco achieve the necessary consensus to move fo

Define the scope of the identified problem

Problem statement: Define the scope of the identified problem in the first paragraph of your paper. Conclude the first paragraph with the question, and explain why the quest

How would leader-member exchange

How would leader-member exchange (LMX), the normative decision model, the Situational Leadership theory, the contingency model, and the path-goal theory prescribe that a lea

Reviews

Write a Review

 
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd