Contemporary Auditing 10th Edition by Michael Knapp

Exercise 22

Exhibits 1 and 4 present DHB's original 2003-2004 balance sheets and income statements and the restated balance sheets and income statements for those two years, respectively. Review the original and restated financial statements for 2004 and identify the "material" differences between them. (Note: You are not required to identify the sources of these differences.) Defend your choices.