Loose-leaf For Auditing & Assurance Services: A Systematic Approach
11th Edition
ISBN: 9781260687637
Author: William F Messier Jr, Steven M Glover Associate Professor, Douglas F Prawitt Associate Professor
Publisher: McGraw-Hill Education
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Chapter 5, Problem 5.38P
A
To determine
Introduction: Expectation statement is a calculation made by the auditor based on the information provided by the management.
To calculate: An expectation for the reserve for returns account.
B
To determine
Introduction: Tolerable difference refers to the difference between amount stated in the statements and auditor’s expectation that would not affect the decision making of the auditor.
To find: The tolerable difference.
C
To determine
Introduction: Tolerable difference refers to the difference between amount stated in the statements and auditor’s expectation that would not affect the decision making of the auditor.
To compare:The expectation to the book value and check if it is greater than the tolerable difference.
D
To determine
Introduction: Tolerable difference refers to the difference between amount stated in the statements and auditor’s expectation that would not affect the decision making of the auditor.
To explain: The steps to be followed by the auditor if the difference between the book value and the expectation is greater than the tolerable difference.
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Chapter 5 Solutions
Loose-leaf For Auditing & Assurance Services: A Systematic Approach
Ch. 5 - Prob. 5.1RQCh. 5 - Prob. 5.2RQCh. 5 - Prob. 5.3RQCh. 5 - Prob. 5.4RQCh. 5 - Prob. 5.5RQCh. 5 - Prob. 5.6RQCh. 5 - Prob. 5.7RQCh. 5 - Prob. 5.8RQCh. 5 - Prob. 5.9RQCh. 5 - Prob. 5.10RQ
Ch. 5 - Prob. 5.11RQCh. 5 - Prob. 5.12RQCh. 5 - Prob. 5.13RQCh. 5 - Prob. 5.14RQCh. 5 - Prob. 5.15RQCh. 5 - Prob. 5.16RQCh. 5 - Prob. 5.17MCQCh. 5 - Prob. 5.18MCQCh. 5 - Prob. 5.19MCQCh. 5 - Prob. 5.20MCQCh. 5 - Prob. 5.21MCQCh. 5 - Prob. 5.22MCQCh. 5 - Prob. 5.23MCQCh. 5 - Prob. 5.24MCQCh. 5 - Prob. 5.25MCQCh. 5 - Prob. 5.26MCQCh. 5 - Prob. 5.27MCQCh. 5 - Prob. 5.28MCQCh. 5 - Prob. 5.29MCQCh. 5 - Prob. 5.30PCh. 5 - Prob. 5.31PCh. 5 - Prob. 5.32PCh. 5 - Prob. 5.33PCh. 5 - Prob. 5.34PCh. 5 - Prob. 5.35PCh. 5 - Prob. 5.36PCh. 5 - Prob. 5.37PCh. 5 - Prob. 5.38PCh. 5 - Prob. 5.39P
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