Case 8.3 Essay

297 words - 2 pages

The Level of Materiality
For the analytical procedures, we use 5% rule of thumb to compute overall materiality and to indicate the level of materiality of the difference between reported revenue and our expected revenue. In this case, we use the 5% of pre-tax net income to establish a level of materiality. We compute the materiality by multiplying 5% with the pre-tax net income of $731,845, in which the result is $36,592.25. Therefore, the difference is ...view middle of the document...

The difference falls within our reasonable range. Therefore, we draw a conclusion that the reported revenues of 2011 are reasonable and fairly stated.
However, the analytical procedures based on the aggregated approach shows the different result, in which the difference between reported revenue and our expected revenue is $356,970. It is greater than overall materiality of $36,592. The difference falls outside our reasonable range and is considered material.
Therefore, the auditor should develop more precise expectations. This is because the use of more detailed data in the disaggregated approach provides more precise expectation and effectiveness than using the aggregated data in the second approach. The disaggregated data provide auditors a greater chance to detect material misstatements. There are additional reasons that can explain why the reported ticket revenues were outside our reasonable range, which could be a misstatement of revenues, auditor error, low reliable of data, an inadequate amount of inputs, improperly recorded transactions, and a management fraud to report false financial statement.
case 8.3

Other Papers Like Case 8.3

Sasktel Case Study

3712 words - 15 pages face problems of decreasing resources and increasing costs of providing healthcare to an aging population. Simply put, the result is that there are too many sick people and not enough beds. Diabetes and hypertension rates of 8.3% and 14.9%, respectively, have also caused policy makers to consider a “preventative vision” to control costs. This would stop patients with these conditions from requiring expensive emergency in-hospital treatment as a

J. Crew: Swot Essay

1805 words - 8 pages against an easy comparison to last year, and that's definitely the case here -- comps increased a mere 4% during the same quarter last year. The financials also reveal that aforementioned long-term debt -- $590 million, as of the first quarter. J. Crew has 24 more times more debt than its mere $25 million in cash. Indeed, the company's risk factors in its annual SEC filing specifically contain the following warning: "We may be substantially


4188 words - 17 pages line item are the following research and development expenses: 1981 - $1,337, 1980 - $3,020, 1979- $2,289. Comprehensive Case United States Surgical Corporation 9 U.S. Surgical Corporation Consolidated Balance Sheets 1979-1981 (Common Size) December 31, 1980 1.0% 25.6% 8.3% 2.2% 15.8% 26.3% 1.3% 54.3% 1981 Current Assets: Cash Receivables (Net) Inventories: Finished Goods Work In Process Raw Materials Other Current Assets Total Current Assets

A Business Plan

4117 words - 17 pages / Marketing mix 10 5.3 growth plan 10 6/ Operations: 11 6.1-Overview 11 6.2 facilities and equipment 11 6.3 employees 11 6.4/suppliers 11 7/technology 12 8/Financial plan 12 8.1/ assumptions (appendices 1) 12 8.2/profit and loss projection (appendices 2) 13 8.3/cash flows projection (appendices3) 13 8.4break even analysis (appendices 4) 13 8.5 ratios analysis 14 Appendices 14 1-assumptions 14 2/ profit and loss 15 3/ cash flow 15 4

Vodafone Vs Mannesmann

1978 words - 8 pages Case #2 – Vodafone AirTouch’s Bid for Mannesmann Mergers and Acquisitions Group 4 Mergers and Acquisitions 1 Executive Summary Mannesmann’s acquisition of Orange page 3 Vodafone’s proposal for the acquisition of Mannesmann page 5 Analysis of the different actors of the deal page 10 May 13th 2013 Mergers and Acquisitions 2 Mannesmann’s acquisition of Orange Companies’ backgrounds

Servervault Company Case

2186 words - 9 pages ServerVault Case Servervault is a company in the hosting industry located in the United States which has been in operation since December 1999. A hosting company provides its customers with physical space for servers and supporting services. Servervault chooses only to operate in the managed hosting section which gives more value-added services to customers. ServerVault attracts Internet-reliant and security-savvy customers. It also provides

Should Professional Sports People (Such As Afl Footballers, National Cricketers) Be Role Models?

2310 words - 10 pages reprimanded for his behavior, it still is inappropriate and should not be demonstrated by a man at such an elite level of Australian Rules football. What must also be taken into consideration is the fact that not only is young Australians influenced by the actions of our sports professionals. The number of individuals using elicit drugs has increased from 8.3% to 9.2% in the past 10 years (Australian Government, 2008) which could be attributed to

Financial Management

3590 words - 15 pages . ________________________________________________________________________________________________________________ HBS Professor W. Carl Kester and Babson College Professor Craig Stephenson prepared this case solely as a basis for class discussion and not as an endorsement, a source of primary data, or an illustration of effective or ineffective management. Although based on real events and despite occasional references to actual companies, this case is fictitious and any resemblance to

4ps Research

5932 words - 24 pages discussions and key informant interviews provided the venues for further discussions on the relevant issues and challenges faced by different agencies implementing the 4Ps. Overall, the case of Cebu City is considerably a success, particularly in terms of targeting the beneficiaries and the crucial role of citilink and focal persons of each barangay. However, there are areas for improvements that need to be recognized such as how to limit

Case 3

4515 words - 19 pages Case 3: DuPont Analysis: Playing the Numbers Game! “Numbers! I need to see numbers!” exclaimed Andrew in response to comments made by the assistant vice-president of Finance, Jack Brown. Andrew Sullivan, the President and Chief Executive Officer of Plastichem Inc., had been instrumental in significantly increasing the company's size during his first five years in office. He spearheaded some successful marketing campaigns and revamped the

The Effects Of Sin Tax To The Buying Behavior Of Smokers In Barangay Narra, San Pedro, Laguna, Philippines

6218 words - 25 pages | Percentage | College Graduate | 15 | 15.6 | Undergrad | 8 | 8.3 | High School | 49 | 51.1 | Elementary | 12 | 12.5 | Unschooled | 12 | 12.5 | Total | 96 | 100 | Table 4.1.5 shows the educational attainment of the respondents where 51.1% of the total respondents only finished High School, 15.6% are College Graduate, 12.5% are Elementary, 12.5% do not enter school and 8.3% are Undergraduate. According to U.S Centers for Disease

Related Essays

Case Solution Starbucks Essay

716 words - 3 pages the CASE: VP of Administration in North America: Christine Day CEO: Orin Smith (A Harvard MBA who joined 1990) Chairman & Chief Global Strategist: Schultz 2. Problem Statement * Starbucks failed to meet customer expectations and deliver satisfaction thereby losing customer loyalty * Whether to invest the $40 million dollars to enhance the labor in each store? * If invested, How it will impact

The Crest Whitestrip Challenge Essay

677 words - 3 pages Case 2-2 - The Crest Whitestrip Challenge Question 1 – Summary of Table A After reviewing the table provided by Simmons Market Research Bureau, spring 2006 the most popular product is all whiteners with a 15.2% of adults that participated on the research. The second and third most popular products were the Whitening strips with 8.3%, followed by Whitening gels with a 5.5% of the adults that participated on the study. The bigger users of any

Analysis Of National Income Trend Since 1950 And Inflexion Points

829 words - 4 pages Macroeconomics – Case 1.3 1 Analysis of National Income Trend since 1951 Rate of Change of National Income 12% 10% 8% 6% 4% 2% 0% -2% -4% -6% Rate of Change of National Income 1951-1965: Post independence the country was wrought with economic stagnation and extreme poverty, as a result this phase witnessed rapid industrialization. While the agricultural sector contributed more than 50% to the GDP, the consumer goods industry were

Planning And Controlling Essay

3614 words - 15 pages LESSON 8 PRODUCTION PLANNING AND CONTROL Abha Kumar STRUCTURE 8.0 8.1 8.2 8.3 8.4 Introduction Objectives Production management Product design Design of production system 8.4.1 Types of production system 8.5 Manufacturing process 8.5.1 Types of manufacturing process 8.5.2 Factors affecting the choice of manufacturing process 8.6 Production planning and control 8.6.1 Benefits to small entrepreneur 8.6.2 Steps of production planning and