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Auditing and Assurance Services 9th Edition by Alvin Arens,Mark Beasley,Randy Elder
Edition 9ISBN: 978-0130459206Auditing and Assurance Services 9th Edition by Alvin Arens,Mark Beasley,Randy Elder
Edition 9ISBN: 978-0130459206 Exercise 4
During the audit of Moon Co., the auditor disagrees with management's estimation of collectible accounts receivable. The possible misstatement amount is material. Which of the statements below should weigh more heavily for the auditor in this instance?
A) Moon management has the right to make company estimates.
B) Requiring an adjustment to the allowance for doubtful accounts would give stockholders access to fair and adequate information.
C) Accounts Receivable as stated by Moon Co. might turn out to be fully collectible.
D) The interests of Moon Co., the auditor, and the public should be weighed equally in the decision.
A) Moon management has the right to make company estimates.
B) Requiring an adjustment to the allowance for doubtful accounts would give stockholders access to fair and adequate information.
C) Accounts Receivable as stated by Moon Co. might turn out to be fully collectible.
D) The interests of Moon Co., the auditor, and the public should be weighed equally in the decision.
Explanation
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Justification:
When the auditor disagre...
Auditing and Assurance Services 9th Edition by Alvin Arens,Mark Beasley,Randy Elder
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