Scribd
Upload
166 views1 page

Audit Misstatement Analysis

The document contains an unadjusted misstatement audit schedule listing various possible misstatements in current assets, non-current assets, current liabilities, and income before tax. It also notes that the materiality threshold for the audit of Westmoreland is $75,000. If the misstatements totaling $249,000 are not corrected, the financial statements would be materially misstated and the auditor would not be able to issue an unqualified opinion.

Uploaded by

Nur Liena Amiera
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
166 views1 page

Audit Misstatement Analysis

The document contains an unadjusted misstatement audit schedule listing various possible misstatements in current assets, non-current assets, current liabilities, and income before tax. It also notes that the materiality threshold for the audit of Westmoreland is $75,000. If the misstatements totaling $249,000 are not corrected, the financial statements would be materially misstated and the auditor would not be able to issue an unqualified opinion.

Uploaded by

Nur Liena Amiera
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd

NUR LIENA AMIERA BINTI SUHAIMI

1140560 TMB3

DISCUSSION QUESTIONS AND PROBLEMS

24-33.

A) Unadjusted misstatement audit schedule using the format:

Possible Misstatement overstatement (understatement)

Type Total Current Non- Current Income


misstatem amount assets current liabilities before tax
ent asset
Timing 125,000 125,000 (125,000)
Depreciatio 85,000 (60,000) 15,000
n expenses
items to be
capitalized
Overstatem 44,000 (44,000) (44,000)
ent in
account
receivable
Accuracy 52,000 (52,000) (52,000)
Classificatio 43,000 (43,000) (43,000)
n
TOTAL (44,000) (30,000) (249,000)

B) Balance sheet and income statement materiality for the audit of


Westmoreland financial statements is $75,000. What is your conclusion
about the financial statements if the audit findings are not corrected by
Westmoreland management before you issue the audit report?

Unadjusted misstatement audit schedule is a record of all misstatements


identified during the auditing session. We can conclude that, immaterial
misstatement can also become a material misstatement to if there is too much
immaterial and when they are combining together it become material misstatement
to the company.

You might also like