...AC*411 Fall 2015 Professor Sheikh Your Name (TYPE with Last Name First e.g., SHEIKH, Aamer): _QUIJANO, Camila _____ BBGP Case 7.1 Ann Aylor, Inc. Determination of Planning Materiality and Performance Materiality Be sure to delete any notes to yourself and to proofread and spell check this document before you turn it in. Print out the entire document (single-sided), staple it, and bring it to class to turn in at the beginning of class on Thursday, November 19. I pledge that, outside of class, I have worked on this case completely independently, and that, outside of class, I have given neither assistance or suggestions to anyone else nor received assistance or suggestions from anyone else in the process of completing this case. Pledge (handwritten signature in pencil):__________________________________ Date (handwritten in pencil):_____________________ Answer the following questions ONLY: Question [1]: Review Exhibits 1 and 2; audit memos G-3 and G-4; and audit schedules G-5, G-6 and G-7. Based on your review, answer each of the following questions: [a] Why are different materiality bases considered when determining planning materiality? [b] Why are different materiality thresholds relevant for different audit engagements? [c] Why is the materiality base that results in the smallest threshold generally used for planning purposes? [e] Why may the auditor use a different performance materiality amount or percentage of account...
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...7 Planning Materiality C a s es inc lu de d in t his Se ction 7.1 Anne Aylor, Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 229 Determination of Planning Materiality and Tolerable Misstatement O t he r c ase s t h at discuss topics rel ated to this section 5.6 Sarbox Scooter, Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . 185 Scoping and Evaluation Judgments in the Audit of Internal Control over Financial Reporting 12.1 EyeMax Corporation . . . Evaluation of Audit Differences . . . . . . . . . . . . . . . . . . . . . . . 369 12.2 Auto Parts, Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 379 Considering Materiality When Evaluating Accounting Policies and Footnote Disclosures Instructor Resource Manual — Do Not Copy or Redistribute Instructor Resource Manual — Do Not Copy or Redistribute Anne Aylor, Inc. C a s e 7.1 Determination of Planning Materiality and Tolerable Misstatement Mark S. Beasley · Frank A. Buckless · Steven M. Glover · Douglas F. Prawitt Ins tr uc t ional O b je c t ive s [1] To provide experience with establishing planning materiality. [2] To provide experience with establishing tolerable misstatement for individual financial statement accounts. [3] To illustrate factors considered when establishing planning materiality...
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...Frank A. Buckless Steven M. Glover Douglas F. Prawitt do not coPy or redistribute Prentice hall Upper Saddle River, New Jersey ta b l e s e ct ion o f co n t e n t s 1 2 client acceptance . . . . . . . . . . . . . . . . . . . . . . . . . . . S o l u tionS inc lu de d in t h iS Section 1.1 Ocean Manufacturing, Inc. 3 The New Client Acceptance Decision s e ct ion Understanding the Client’s Business and assessing risk . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 S o l u tionS inc lu de d in t h iS Section 2.1 Your1040Return.com Evaluating eBusiness Revenue Recognition, Information Privacy, and Electronic Evidence Issues . . . . . . . . . . . . . . . . . . . . . . . . . . 25 2.2 2.3 2.4 Dell Computer Corporation Evaluation of Client Business Risk Flash Technologies, Inc. Asher Farms Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39 Risk Analysis and Resolution of Client Issues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49 Understanding of Client’s Business Environment s e ct ion 3 Professional and ethical issues . . . . . . . . . . . . . . . . . . . . . . . 59 S o l u tio nS inc lu de d in t h iS Section 3.1 3.2 3.3 3.4 3.5 A Day in the Life of Brent Dorsey Staff Auditor Professional Pressures Nathan Johnson’s Rental Car Reimbursement Solving Ethical Dilemmas–Should He Pocket the Cash? Recognizing It’s a Fraud and Evaluating What to Do . ...
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...Essay RELIGIOUS EXPERIENCE IN THE AGE OF DIGITAL REPRODUCTION* Frederick Mark Gedicks† Roger Hendrix†† (forthcoming in St. John’s Law Review (Fall 2004)) And the angel of the Lord appeared to Moses in a flame of fire out of the midst of a bush; and he looked, and lo, the bush was burning, yet it was not consumed. God called to him out of the bush, "Moses, Moses!" And he said, "Here am I." Then he said, "Do not come near; put off your shoes from your feet, for the place on which you are standing is holy ground." And he said, "I am the God of your father, the God of Abraham, the God of Isaac, and the God of Jacob." And Moses hid his face, for he was afraid to look at God. —Exodus 3:2, 4-6 Now as Saul journeyed he approached Damascus, and suddenly a light from heaven flashed about him. And he fell to the ground and heard a voice saying to him, "Saul, Saul, why do you persecute me?" And he said, "Who are you, Lord?" And he said, "I am Jesus, whom you are persecuting.” —Acts 9:3-6 The Passion of The Christ is the best movie I have ever seen. It was graphic and faithfully stayed with the Gospel texts. The neck of my shirt was soaked with tears during the scourging, and I felt like a softball was lodged in the back of my throat as the movie concluded. The nearest feeling that I can compare it to was an * Copyright © Frederick Mark Gedicks & Roger Hendrix. All rights reserved. This essay is based on a lecture delivered by Professor Gedicks at the St. John’s University College of Law...
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...determined by the work of local and regional media. Generally, those journalists do a competent job of reporting on the prospect’s record. In the case of Governor George W. Bush, Texas reporters had written numerous stories about his failed businesses in the oil patch, the dubious land grab and questionable funding behind a new stadium for Bush’s baseball team, the Texas Rangers, and his various political contradictions and hypocrisies while serving in Austin. I was one of those Texas journalists. I spent about a decade trying to find accurate information on Bush’s record in the Texas National Guard. My curiosity had been prompted by his failure to adequately answer a question I had asked him as a panelist in a televised debate with Ann Richards during the 1994 gubernatorial campaign. Eventually I published three books on Bush and his political consigliere, Karl Rove. During Bush’s presidency, many other...
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