Ability to Determine and Allocate Materiality

Ability to Determine and Allocate Materiality

Countryman Designs Inc.

Materiality

This assignment relates to the following Course Learning Requirements:  (Insert the applicable ones)

CLR 4

 

Objective of this Assignment:

The purpose of this assignment is to assess your ability to determine and allocate materiality and support you reasons for your materiality.

 

Review the following documents: company background memo, accounting policies memo, financial information and working papers 518 and 519.

Based on your review complete audit schedule 520. Ensure in the planning materiality explanation section that you explain why you selected:

• The benchmark you used to calculate materiality
• The percentage you applied to the benchmark
• The likelihood of management fraud

Ensure for the accounts you identify as requiring a lower performance materiality you explain your rationale.

The only item you should submit for grading is your completed working paper 520.

Resources:

The company background memo, accounting policies memo, financial information and working papers 518 and 519 are all located on Blackboard under Assignment Two.