FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Company A's
- Net Income: $15,000,000
- Total Assets: $75,000,000
- Total Revenue: $200,000,000
- Net Revenue: $50,000,000
You are the associate auditor on this client. Your senior auditor tells you that for Company A, 1.5% is the materiality judgement. Based on the appropriate benchmark identified in Question #1, determine the planning materiality. Show your work.
Your work should look like:
BENCHMARK AMOUNT x MATERIALITY JUDGEMENT = PLANNING MATERIALITY
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