Tracy, senior accountant at JFM CPA firm, is determining the performance materially materially in year 2. Tracy expects that there will be a likelihood of uncorrected and undetected misstatements. JFM CPA Firm's material guidelines advise the auditor to set performance materially in the range of 50 percent to 70 percent of overall materiality based on the likelihood of misstatements. Tracy has calculated overall materiality at $140,000. Tracy will most likely set performance materiality closest to: A. $98,000 B. $70,000 C. $140,000 D. $168,000

Tracy, senior accountant at JFM CPA firm, is determining the performance materially materially in year 2. Tracy expects that there will be a likelihood of uncorrected and undetected misstatements. JFM CPA Firm's material guidelines advise the auditor to set performance materially in the range of 50 percent to 70 percent of overall materiality based on the likelihood of misstatements. Tracy has calculated overall materiality at $140,000. Tracy will most likely set performance materiality closest to: A. $98,000 B. $70,000 C. $140,000 D. $168,000

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter3: Cost Behavior

Section: Chapter Questions

Problem 22E: Ginnian and Fitch, a regional accounting firm, performs yearly audits on a number of different...

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Concept explainers

Audit Procedures

Audit Procedures are methods and techniques performed by the auditor to determine the quality of financial information of clients, thereby expressing an opinion on true & fair view of financial statements and entity position. They are identified and applied at the planning stage of audit after determining audit objectives, scope, approach, and risk assessment.

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Tracy, senior accountant at JFM CPA firm, is determining the performance materially materially in year 2. Tracy expects that there will be a likelihood of uncorrected and undetected misstatements.

JFM CPA Firm's material guidelines advise the auditor to set performance materially in the range of 50 percent to 70 percent of overall materiality based on the likelihood of misstatements. Tracy has calculated overall materiality at $140,000. Tracy will most likely set performance materiality closest to:

A. $98,000

B. $70,000

C. $140,000

D. $168,000

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