Case 12.1 EyeMax Corporation “\ufffd evaluating audit differences\t\u00a0\tAssume that you are the auditor responsible for the EyeMax audit. It is now March 30, and all planned\tfieldwork has been completed. Recall that total financial statement materiality has been set at $625,000.\tTaking into account the information provided, please answer the following question.\t[1] Which of the following three alternatives best describes the conditions under which you\twould issue a clean opinion for EyeMax? (select one) ____\ta. I would not be willing to issue a clean opinion even if EyeMax is willing to make adjustments\tfor items on the Summary of Unadjusted Misstatements. ____\tb. I would be willing to issue a clean opinion without any adjustments. ____\tc. I would be willing to issue a clean opinion only if EyeMax is willing to make some adjustments\tto their financial statements for items on the Summary of Unadjusted Misstatements. Briefly explainyour choice:\t\u00a0\t\t[2] If you selected options “a”\ufffd or “b”\ufffd in question 1, assume now that the client has decided that\tthey will make an adjustment of up to $250,000 to their financial statements. Please decompose the\ttotal adjustment you would recommend into the individual account classifications included on the\tSummary of Unadjusted Misstatements in the space provided below (e.g., what adjustment would you\trequire for warranty expense, repair and maintenance expense, etc? The dollar values of your individual\taccount adjustments should sum to no more than $250,000).\tIf you selected item “c”\ufffd in question 1, what is the minimum total adjustment that you would\trequire before issuing a clean opinion? $________________Please decompose this total adjustment into\tthe individual account classifications included on the Summary of Unadjusted Misstatements in the\tspace provided below (e.g., what adjustment, if any, would you require for warranty expense, repair and\tmaintenance expense, etc? The dollar values of your individual account adjustments should sum to your\trequired minimum adjustment). Please briefly explain your decisions:<\/p>\n","protected":false},"excerpt":{"rendered":"
Case 12.1 EyeMax Corporation “\ufffd evaluating audit differences \u00a0 Assume that you are the auditor responsible for the EyeMax audit. It is now March 30, and all planned fieldwork has been completed. Recall that total financial statement materiality has been Read More …<\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-200037","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts\/200037","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/comments?post=200037"}],"version-history":[{"count":0,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts\/200037\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/media?parent=200037"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/categories?post=200037"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/tags?post=200037"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}