In context of audit, materiality refers to the significance of an item or transaction in the books of accounts which have a direct bearing on the opinion of auditor and assessment of financial performance by users of financial statements. To Define: Planning materiality and its practical application in audit.

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Answer 1

Question

Chapter 7, Problem 3RQSC

a.

To determine

Introduction: In context of audit, materiality refers to the significance of an item or transaction in the books of accounts which have a direct bearing on the opinion of auditor and assessment of financial performance by users of financial statements.

To Define: Planning materiality and its practical application in audit.

b.

To determine

Introduction: Performance materiality refers to the significance assigned to an individual category of item(s) or transaction(s) by the auditor during the course of audit.

To define: Performance materiality and its practical application.

c.

To determine

Introduction: Posting materiality is that value of audit item or transaction which, if identified during audit, must be documented separately for subsequent consideration during the audit.

To define: Posting materiality and its application in audit.

d.

To determine

Introduction: Qualitative factors are those non-monetary considerations which are significant in the process of audit and have a direct bearing on audit procedures, audit scope, extent and nature.

To Discuss: Impact of qualitative factors in quantitative materiality assessment.

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Students have asked these similar questions

1. Please explain how to Evaluate the Data Reliability When Developing Expectations. The data an auditor will use to develop expectations in the acquisition and payment cycle has been deemed reliable by the audit staff. 2. Please Discuss the likely factors the audit team will consider when making this determination.

You have been asked by the audit manager to undertake preliminary analytical procedures.a) Identify the sources of information from which an auditor develops expectations.b) Describe the factors that influence an auditor’s consideration of the reliability of data for purposes of achieving audit objectives.

The auditing assesses the reliability and sufficiency of the information through _____________ a. Comparison b. Testing c. Evaluation d. Judgement

Answer 2

Question

Chapter 7, Problem 3RQSC

a.

To determine

Introduction: In context of audit, materiality refers to the significance of an item or transaction in the books of accounts which have a direct bearing on the opinion of auditor and assessment of financial performance by users of financial statements.

To Define: Planning materiality and its practical application in audit.

b.

To determine

Introduction: Performance materiality refers to the significance assigned to an individual category of item(s) or transaction(s) by the auditor during the course of audit.

To define: Performance materiality and its practical application.

c.

To determine

Introduction: Posting materiality is that value of audit item or transaction which, if identified during audit, must be documented separately for subsequent consideration during the audit.

To define: Posting materiality and its application in audit.

d.

To determine

Introduction: Qualitative factors are those non-monetary considerations which are significant in the process of audit and have a direct bearing on audit procedures, audit scope, extent and nature.

To Discuss: Impact of qualitative factors in quantitative materiality assessment.

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Answer 3

Question

Chapter 7, Problem 3RQSC

a.

To determine

Introduction: In context of audit, materiality refers to the significance of an item or transaction in the books of accounts which have a direct bearing on the opinion of auditor and assessment of financial performance by users of financial statements.

To Define: Planning materiality and its practical application in audit.

b.

To determine

Introduction: Performance materiality refers to the significance assigned to an individual category of item(s) or transaction(s) by the auditor during the course of audit.

To define: Performance materiality and its practical application.

c.

To determine

Introduction: Posting materiality is that value of audit item or transaction which, if identified during audit, must be documented separately for subsequent consideration during the audit.

To define: Posting materiality and its application in audit.

d.

To determine

Introduction: Qualitative factors are those non-monetary considerations which are significant in the process of audit and have a direct bearing on audit procedures, audit scope, extent and nature.

To Discuss: Impact of qualitative factors in quantitative materiality assessment.

Expert Solution & Answer

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Answer 4

Question

Chapter 7, Problem 3RQSC

a.

To determine

Introduction: In context of audit, materiality refers to the significance of an item or transaction in the books of accounts which have a direct bearing on the opinion of auditor and assessment of financial performance by users of financial statements.

To Define: Planning materiality and its practical application in audit.

b.

To determine

Introduction: Performance materiality refers to the significance assigned to an individual category of item(s) or transaction(s) by the auditor during the course of audit.

To define: Performance materiality and its practical application.

c.

To determine

Introduction: Posting materiality is that value of audit item or transaction which, if identified during audit, must be documented separately for subsequent consideration during the audit.

To define: Posting materiality and its application in audit.

d.

To determine

Introduction: Qualitative factors are those non-monetary considerations which are significant in the process of audit and have a direct bearing on audit procedures, audit scope, extent and nature.

To Discuss: Impact of qualitative factors in quantitative materiality assessment.

Expert Solution & Answer

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Answer 5

Chapter 7, Problem 3RQSC

a.

To determine

Introduction: In context of audit, materiality refers to the significance of an item or transaction in the books of accounts which have a direct bearing on the opinion of auditor and assessment of financial performance by users of financial statements.

To Define: Planning materiality and its practical application in audit.

b.

To determine

Introduction: Performance materiality refers to the significance assigned to an individual category of item(s) or transaction(s) by the auditor during the course of audit.

To define: Performance materiality and its practical application.

c.

To determine

Introduction: Posting materiality is that value of audit item or transaction which, if identified during audit, must be documented separately for subsequent consideration during the audit.

To define: Posting materiality and its application in audit.

d.

To determine

Introduction: Qualitative factors are those non-monetary considerations which are significant in the process of audit and have a direct bearing on audit procedures, audit scope, extent and nature.

To Discuss: Impact of qualitative factors in quantitative materiality assessment.

Answer 6

Chapter 7, Problem 3RQSC

a.

To determine

Introduction: In context of audit, materiality refers to the significance of an item or transaction in the books of accounts which have a direct bearing on the opinion of auditor and assessment of financial performance by users of financial statements.

To Define: Planning materiality and its practical application in audit.

Answer 7

Chapter 7, Problem 3RQSC

a.

To determine

Introduction: In context of audit, materiality refers to the significance of an item or transaction in the books of accounts which have a direct bearing on the opinion of auditor and assessment of financial performance by users of financial statements.

To Define: Planning materiality and its practical application in audit.

Answer 8

b.

To determine

Introduction: Performance materiality refers to the significance assigned to an individual category of item(s) or transaction(s) by the auditor during the course of audit.

To define: Performance materiality and its practical application.

Answer 9

b.

To determine

Introduction: Performance materiality refers to the significance assigned to an individual category of item(s) or transaction(s) by the auditor during the course of audit.

To define: Performance materiality and its practical application.

Answer 10

c.

To determine

Introduction: Posting materiality is that value of audit item or transaction which, if identified during audit, must be documented separately for subsequent consideration during the audit.

To define: Posting materiality and its application in audit.

Answer 11

c.

To determine

Introduction: Posting materiality is that value of audit item or transaction which, if identified during audit, must be documented separately for subsequent consideration during the audit.

To define: Posting materiality and its application in audit.

Answer 12

d.

To determine

Introduction: Qualitative factors are those non-monetary considerations which are significant in the process of audit and have a direct bearing on audit procedures, audit scope, extent and nature.

To Discuss: Impact of qualitative factors in quantitative materiality assessment.

Answer 13

d.

To determine

Introduction: Qualitative factors are those non-monetary considerations which are significant in the process of audit and have a direct bearing on audit procedures, audit scope, extent and nature.

To Discuss: Impact of qualitative factors in quantitative materiality assessment.

Answer 14

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Answer 15

Expert Solution & Answer

Answer 16

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Answer 17

Ch. 7 - Prob. 1CYBK Ch. 7 - Prob. 2CYBK Ch. 7 - Prob. 3CYBK Ch. 7 - Prob. 4CYBK Ch. 7 - Prob. 5CYBK Ch. 7 - Prob. 6CYBK Ch. 7 - Prob. 7CYBK Ch. 7 - Prob. 8CYBK Ch. 7 - Prob. 9CYBK Ch. 7 - Prob. 10CYBK

Concept explainers

Introduction: Performance materiality refers to the significance assigned to an individual category of item(s) or transaction(s) by the auditor during the course of audit.

To define: Performance materiality and its practical application.

Introduction: Posting materiality is that value of audit item or transaction which, if identified during audit, must be documented separately for subsequent consideration during the audit.

To define: Posting materiality and its application in audit.

Introduction: Qualitative factors are those non-monetary considerations which are significant in the process of audit and have a direct bearing on audit procedures, audit scope, extent and nature.

To Discuss: Impact of qualitative factors in quantitative materiality assessment.

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Chapter 7 Solutions

Concept explainers

Introduction: Performance materiality refers to the significance assigned to an individual category of item(s) or transaction(s) by the auditor during the course of audit. To define: Performance materiality and its practical application.

Introduction: Posting materiality is that value of audit item or transaction which, if identified during audit, must be documented separately for subsequent consideration during the audit. To define: Posting materiality and its application in audit.

Introduction: Qualitative factors are those non-monetary considerations which are significant in the process of audit and have a direct bearing on audit procedures, audit scope, extent and nature. To Discuss: Impact of qualitative factors in quantitative materiality assessment.

Want to see the full answer?

Chapter 7 Solutions

Introduction: Performance materiality refers to the significance assigned to an individual category of item(s) or transaction(s) by the auditor during the course of audit.

To define: Performance materiality and its practical application.

Introduction: Posting materiality is that value of audit item or transaction which, if identified during audit, must be documented separately for subsequent consideration during the audit.

To define: Posting materiality and its application in audit.

Introduction: Qualitative factors are those non-monetary considerations which are significant in the process of audit and have a direct bearing on audit procedures, audit scope, extent and nature.

To Discuss: Impact of qualitative factors in quantitative materiality assessment.