Banks are specifically interested in accounts receivable and inventory as these are collateral for a commercial loan. Assuming that you are the auditor of a client with a bank loan. The client has total assets of S1,815,000, and the combined accounts receivable and inventory represents 491 of total assets. Requirement: Recommend a related specific performance materiality as a percentage of the composition of accounts receivable and inventories.

Banks are specifically interested in accounts receivable and inventory as these are collateral for a commercial loan. Assuming that you are the auditor of a client with a bank loan. The client has total assets of S1,815,000, and the combined accounts receivable and inventory represents 491 of total assets. Requirement: Recommend a related specific performance materiality as a percentage of the composition of accounts receivable and inventories.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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