Remake of answer 9-3 | 9-10 by mdfauzimail https://padlet.com/mdfauzimail/zyp3wiwt1da7 Discuss how materiality and risk are related and integrated into the audit process, the following question 9-3 | 9-10 on text book en-us 2017-09-11 02:16:22 UTC 2023-03-12 00:02:14 UTC hello@padlet.com https://padlet-assets.s3.amazonaws.com/icons/Watchclock.png 01DAT16F1043 MOHAMMAD ZUHRIE NAIM BIN ZULKIFLI https://padlet.com/mdfauzimail/zyp3wiwt1da7/wish/186218838 Review question 
9-3
9-10
Answer 👇

]]> 2017-09-11 02:22:09 UTC https://padlet.com/mdfauzimail/zyp3wiwt1da7/wish/186218838 01DAT16F1008 NUR ZULAIKHA BINTI ZAKARIA https://padlet.com/mdfauzimail/zyp3wiwt1da7/wish/186219274 2017-09-11 02:24:41 UTC https://padlet.com/mdfauzimail/zyp3wiwt1da7/wish/186219274 https://padlet.com/mdfauzimail/zyp3wiwt1da7/wish/186219306 9-3 ]]> 2017-09-11 02:24:56 UTC https://padlet.com/mdfauzimail/zyp3wiwt1da7/wish/186219306 01DAT16F1003 https://padlet.com/mdfauzimail/zyp3wiwt1da7/wish/186219741 Irra nurshahira binti kamal]]> 2017-09-11 02:27:59 UTC https://padlet.com/mdfauzimail/zyp3wiwt1da7/wish/186219741 01DAT16F1008 https://padlet.com/mdfauzimail/zyp3wiwt1da7/wish/186219947 2017-09-11 02:29:38 UTC https://padlet.com/mdfauzimail/zyp3wiwt1da7/wish/186219947 01DAT16F1010 - IRFAN BIN ISMAIL https://padlet.com/mdfauzimail/zyp3wiwt1da7/wish/186219950 2017-09-11 02:29:40 UTC https://padlet.com/mdfauzimail/zyp3wiwt1da7/wish/186219950 01 https://padlet.com/mdfauzimail/zyp3wiwt1da7/wish/186220129 2017-09-11 02:31:04 UTC https://padlet.com/mdfauzimail/zyp3wiwt1da7/wish/186220129 01DAT16F1002 (NUR HUSNA SHAFINA BINTI HUZAIME) https://padlet.com/mdfauzimail/zyp3wiwt1da7/wish/186220131 9-3) Explain why materiality is important but difficult to apply in practice?
Materiality is important because if financial statements are material misstated, users' decisions may be affected and that may cause them loss. It is difficult to apply because there are many different users of the financial statements. Auditors must must make an assessment of the likely users, and exercise professional judgment in the application of materiality.

9-10) How will the conduct of an audit of a medium sized company be affected by the company's being a small part of a large conglomerate as compared with it being a separate entity?
If an audit is being performed on a medium sized company that is part of a conglomerate, the auditor must make a materiality judgment based upon the conglomerate. Materiality may be larger for a company that is part of a conglomerate because even though the financial statements of the medium sized company may be misstated, the financial statements of the large conglomerate might still be fairly stated. If the auditor is giving a serape opinion on the medium sized company, the materiality would be lower than for the audit of a conglomerate.


]]> 2017-09-11 02:31:04 UTC https://padlet.com/mdfauzimail/zyp3wiwt1da7/wish/186220131 https://padlet.com/mdfauzimail/zyp3wiwt1da7/wish/186220177 2017-09-11 02:31:26 UTC https://padlet.com/mdfauzimail/zyp3wiwt1da7/wish/186220177 01DAT16F1059 https://padlet.com/mdfauzimail/zyp3wiwt1da7/wish/186220347 NUR AFIQAH BT JOHARI]]> 2017-09-11 02:32:47 UTC https://padlet.com/mdfauzimail/zyp3wiwt1da7/wish/186220347 NUR SHUHADA BINTI MOHD SHUKRI https://padlet.com/mdfauzimail/zyp3wiwt1da7/wish/186220672 01DAT16F1009]]> 2017-09-11 02:35:43 UTC https://padlet.com/mdfauzimail/zyp3wiwt1da7/wish/186220672 01DAT16F1008 NUR ZULAIKHA BT ZAKARIA https://padlet.com/mdfauzimail/zyp3wiwt1da7/wish/186220675 2017-09-11 02:35:43 UTC https://padlet.com/mdfauzimail/zyp3wiwt1da7/wish/186220675 01Dat16F1059 https://padlet.com/mdfauzimail/zyp3wiwt1da7/wish/186220776 Nur afiqah bt joha]]> 2017-09-11 02:36:32 UTC https://padlet.com/mdfauzimail/zyp3wiwt1da7/wish/186220776 NURDHANIAH BINTI MOHD KASSIM https://padlet.com/mdfauzimail/zyp3wiwt1da7/wish/186220905 2017-09-11 02:37:33 UTC https://padlet.com/mdfauzimail/zyp3wiwt1da7/wish/186220905 https://padlet.com/mdfauzimail/zyp3wiwt1da7/wish/186220916 2017-09-11 02:37:38 UTC https://padlet.com/mdfauzimail/zyp3wiwt1da7/wish/186220916 NUR SHUHADA BINTI MOHD SHUKRI 01DAT16F1009 https://padlet.com/mdfauzimail/zyp3wiwt1da7/wish/186220924 2017-09-11 02:37:43 UTC https://padlet.com/mdfauzimail/zyp3wiwt1da7/wish/186220924 Up https://padlet.com/mdfauzimail/zyp3wiwt1da7/wish/186220964 2017-09-11 02:37:59 UTC https://padlet.com/mdfauzimail/zyp3wiwt1da7/wish/186220964 NURDHANIAH BINTI MOHD KASSIM https://padlet.com/mdfauzimail/zyp3wiwt1da7/wish/186221032 2017-09-11 02:38:29 UTC https://padlet.com/mdfauzimail/zyp3wiwt1da7/wish/186221032 ANIS AINUR FATIN BINTI MOHD TAKHIUDDIN (01DAT16F1111) https://padlet.com/mdfauzimail/zyp3wiwt1da7/wish/186221213

]]> 2017-09-11 02:39:35 UTC https://padlet.com/mdfauzimail/zyp3wiwt1da7/wish/186221213 NUR SYAFIQAH OSMAN https://padlet.com/mdfauzimail/zyp3wiwt1da7/wish/186221305 2017-09-11 02:40:03 UTC https://padlet.com/mdfauzimail/zyp3wiwt1da7/wish/186221305 ANIS AINUR FATIN BINTI MOHD TAKHIUDDIN (01DAT16F1111) https://padlet.com/mdfauzimail/zyp3wiwt1da7/wish/186221579 9-3(objective 9-1,9-2)Explain why materiality is important but difficult to apply in practice. 

Answer:

Materiality is important because if financial statements are materially misstated, users' decisions may be affected, and thereby cause financial loss to them. It is difficult to apply because there are often many different users of the financial statements. The auditor must therefore make an assessment of the likely users and the decisions they will make. Materiality is also difficult to apply because it is a relative concept. The professional auditing standards offer little specific guidance regarding the application of materiality. The auditor must, therefore, exercise considerable professional judgment in the application of materiality.

 

9-10(objective 9-2)how will the conduct of an audit of a medium-sized company be affected by the company's being a small part of of a large conglomerate as compared with it being a separate entity?

Answer:

If an audit is being performed on a medium-sized company that is part of a conglomerate, the auditor must make a materiality judgment based upon the conglomerate. Materiality may be larger for a company that is part of a conglomerate because even though the financial statements of the medium-sized company may be misstated, the financial statements of the large conglomerate might still be fairly stated. If, however, the auditor is giving a separate opinion on the medium-sized company, the materiality would be lower than for the audit of a conglomerate.

]]> 2017-09-11 02:41:41 UTC https://padlet.com/mdfauzimail/zyp3wiwt1da7/wish/186221579 https://padlet.com/mdfauzimail/zyp3wiwt1da7/wish/186221696 2017-09-11 02:42:35 UTC https://padlet.com/mdfauzimail/zyp3wiwt1da7/wish/186221696 NIR SYAFIQAH BINTI OSMAN (01DAT16F1062) https://padlet.com/mdfauzimail/zyp3wiwt1da7/wish/186221920 Materiality is important because if financial statements are material mistated,users' decisions may be affected and that may cause them loss.It is dificult to apply because there are many different users of the financial statement]]> 2017-09-11 02:43:56 UTC https://padlet.com/mdfauzimail/zyp3wiwt1da7/wish/186221920 NURDHANIAH BINTI MOHD KASSIM 01DAT16F1064 https://padlet.com/mdfauzimail/zyp3wiwt1da7/wish/186222003 2017-09-11 02:44:34 UTC https://padlet.com/mdfauzimail/zyp3wiwt1da7/wish/186222003 https://padlet.com/mdfauzimail/zyp3wiwt1da7/wish/186222061 NURUL NABILAH BINTI MOHD ISA(01DAT16F1061)]]> 2017-09-11 02:44:48 UTC https://padlet.com/mdfauzimail/zyp3wiwt1da7/wish/186222061 01DAT16F1059 NUR AFIQAH BINTI JOHARI https://padlet.com/mdfauzimail/zyp3wiwt1da7/wish/186222194 2017-09-11 02:45:53 UTC https://padlet.com/mdfauzimail/zyp3wiwt1da7/wish/186222194 01dat16f1012 WAN NOR ATIQAH HANNAN BT WAN AZIZ https://padlet.com/mdfauzimail/zyp3wiwt1da7/wish/186222405 2017-09-11 02:47:26 UTC https://padlet.com/mdfauzimail/zyp3wiwt1da7/wish/186222405 01DAT16F1059 NUR AFIQAH BT JOHARI https://padlet.com/mdfauzimail/zyp3wiwt1da7/wish/186222894 2017-09-11 02:50:34 UTC https://padlet.com/mdfauzimail/zyp3wiwt1da7/wish/186222894 https://padlet.com/mdfauzimail/zyp3wiwt1da7/wish/186223086 9-3 Materiality is important because if financial statements are materiality misstated, user's decisions may be affected, and thereby cause financial loss to them. It is difficult to apply because there are often many different users of the financial statement. The auditor must  therefore make an assessment of the likely users and the decisions they will make. Materiality is also difficult to apply because it is a relative concept. The professional auditing standards offer little specific guidence regarding the application of materiality. The auditor must, therefore, exercise considerable professional judgement in the application of materiality.

9-10 If an audit is being performed on a medium-sized company that is part of a conglomerate, the auditor must make a materiality judgement based upon the conglomerate. Materiality may be larger for a company that is part of a conglomerate because even though the financial statements of the medium-sized company may be misstated, the financial statements of the large conglomerate might still be fairly stated. If, however, the auditor is giving a separate opinion on the medium-sized company, the materiality would be lower than for the audit of a conglomerate.

]]> 2017-09-11 02:51:59 UTC https://padlet.com/mdfauzimail/zyp3wiwt1da7/wish/186223086 SYED MUHAMMAD IHSAN BIN SYED ABDUL HALIM 01DAT16F1056 https://padlet.com/mdfauzimail/zyp3wiwt1da7/wish/186223158 9-3 Materiality is important because if financial statements are materiality misstated, user's decisions may be affected, and thereby cause financial loss to them. It is difficult to apply because there are often many different users of the financial statement. The auditor must  therefore make an assessment of the likely users and the decisions they will make. Materiality is also difficult to apply because it is a relative concept. The professional auditing standards offer little specific guidence regarding the application of materiality. The auditor must, therefore, exercise considerable professional judgement in the application of materiality.

9-10 If an audit is being performed on a medium-sized company that is part of a conglomerate, the auditor must make a materiality judgement based upon the conglomerate. Materiality may be larger for a company that is part of a conglomerate because even though the financial statements of the medium-sized company may be misstated, the financial statements of the large conglomerate might still be fairly stated. If, however, the auditor is giving a separate opinion on the medium-sized company, the materiality would be lower than for the audit of a conglomerate.

]]> 2017-09-11 02:52:33 UTC https://padlet.com/mdfauzimail/zyp3wiwt1da7/wish/186223158 Review question https://padlet.com/mdfauzimail/zyp3wiwt1da7/wish/186223190 9-3(Objective 9-1)
 
Materiality is important because if financial statements are materially misstated, users' decisions may be affected, and thereby cause financial loss to them. It is difficult to apply because there are often many different users of financial statements.

9-10(Objective 9-2)
]]> 2017-09-11 02:52:46 UTC https://padlet.com/mdfauzimail/zyp3wiwt1da7/wish/186223190 https://padlet.com/mdfauzimail/zyp3wiwt1da7/wish/186223499 2017-09-11 02:55:00 UTC https://padlet.com/mdfauzimail/zyp3wiwt1da7/wish/186223499 https://padlet.com/mdfauzimail/zyp3wiwt1da7/wish/186223787 9-10(objective 9-2)how will the conduct of an audit of a medium-sized company be affected by the company's being a small part of of a large conglomerate as compared with it being a separate entity?

Answer:

If an audit is being performed on a medium-sized company that is part of a conglomerate, the auditor must make a materiality judgment based upon the conglomerate. Materiality may be larger for a company that is part of a conglomerate because even though the financial statements of the medium-sized company may be misstated, the financial statements of the large conglomerate might still be fairly stated. If, however, the auditor is giving a separate opinion on the medium-sized company, the materiality would be lower than for the audit of a conglomerate.

]]> 2017-09-11 02:56:51 UTC https://padlet.com/mdfauzimail/zyp3wiwt1da7/wish/186223787 R https://padlet.com/mdfauzimail/zyp3wiwt1da7/wish/186223847 2017-09-11 02:57:22 UTC https://padlet.com/mdfauzimail/zyp3wiwt1da7/wish/186223847 NIR SYAFIQAH OSMAN(01DAT16F1062 https://padlet.com/mdfauzimail/zyp3wiwt1da7/wish/186223901 9-10(objective 9-2)how will the conduct of an audit of a medium-sized company be affected by the company's being a small part of of a large conglomerate as compared with it being a separate entity?

Answer:

If an audit is being performed on a medium-sized company that is part of a conglomerate, the auditor must make a materiality judgment based upon the conglomerate. Materiality may be larger for a company that is part of a conglomerate because even though the financial statements of the medium-sized company may be misstated, the financial statements of the large conglomerate might still be fairly stated. If, however, the auditor is giving a separate opinion on the medium-sized company, the materiality would be lower than for the audit of a conglomerate.

]]> 2017-09-11 02:57:37 UTC https://padlet.com/mdfauzimail/zyp3wiwt1da7/wish/186223901 Re https://padlet.com/mdfauzimail/zyp3wiwt1da7/wish/186223986 2017-09-11 02:58:06 UTC https://padlet.com/mdfauzimail/zyp3wiwt1da7/wish/186223986 Review https://padlet.com/mdfauzimail/zyp3wiwt1da7/wish/186224206 2017-09-11 02:59:29 UTC https://padlet.com/mdfauzimail/zyp3wiwt1da7/wish/186224206 NUR AQILAH BINTI ABD RAHMAN(01DAT16F1001) https://padlet.com/mdfauzimail/zyp3wiwt1da7/wish/186224245 2017-09-11 02:59:43 UTC https://padlet.com/mdfauzimail/zyp3wiwt1da7/wish/186224245 Review question https://padlet.com/mdfauzimail/zyp3wiwt1da7/wish/186224253 9-3(objective 9-1)
 
Materiality is important because if financial statements are materially misstated, users' decisions may be affected, and thereby cause financial loss to them. It is difficult to apply because there are often many different users of financial statements.

9-10(objective 9-2)
Materiality would be lower for a company that is part of a conglomerate because even though the financial statements of the​ medium-sized company may be​ misstated, the financial statements of the large conglomerate might still be fairly stated.​ If, however, the auditor is giving a separate opinion on the​ medium-sized company, the materiality may be larger than for the audit of a conglomerate.
]]> 2017-09-11 02:59:47 UTC https://padlet.com/mdfauzimail/zyp3wiwt1da7/wish/186224253 https://padlet.com/mdfauzimail/zyp3wiwt1da7/wish/186224828 2017-09-11 03:03:03 UTC https://padlet.com/mdfauzimail/zyp3wiwt1da7/wish/186224828 MOHD FARIDZUAN BIN FARIN YUZRIN 01DAT16F1019 https://padlet.com/mdfauzimail/zyp3wiwt1da7/wish/186225171 9-3 Materiality is important but difficult to apply in practice because auditors are responsible for determining whether financial statements are materially misstated, they must, upon discovering a material misstatement, btinf it to the client's attention so that  a correction can be made. If thevclient refuses to correct the statements, the auditor must issue a qualified or an adverse opinion, depending on the materiality of the misstatement. To make such determinations, auditors depend on a thorough knowledge of the application of materiality.
9-10 The conduct of an audit of a medium-sized company be affected by the company's being a small part of a large conglomerate as compared with it being a separate entity by
-Amounts involving fraud are usually considered more important than unintentional errors of equal ringgit amounts because fraud reflects on the honesty and reliability of the management or other personnel involved - examples,most users consider an intentional misstatement of inventory more important than clerical errors in inventory of the same ringgit amount.
-Misstatements that are otherwise minor may be material if there are possible consequences arising from contractual obligations - examples,say that net working capital included in the financial statements is only a few hundred ringgits more than the required minimum in a loan agreement. Ig the correct net working capital were less than the required minimum, putting thr loan in default, the current and noncurrent liability classifications would be materially affected.
-Misstatements that are otherwise immaterial may be material if they affect a trend in earnings - examples, if reported income has increased 3 percent annually for the past 5 years but income for the current year has declined 1 percent, that change may be material. Similarly, a misstatement that would cause a loss to be reported as a profit may be concern.]]> 2017-09-11 03:05:20 UTC https://padlet.com/mdfauzimail/zyp3wiwt1da7/wish/186225171 01DAT16F1010 - IRFAN BIN ISMAIL https://padlet.com/mdfauzimail/zyp3wiwt1da7/wish/186225190 2017-09-11 03:05:27 UTC https://padlet.com/mdfauzimail/zyp3wiwt1da7/wish/186225190 01DAT16F1080 https://padlet.com/mdfauzimail/zyp3wiwt1da7/wish/186228422 AARUN A/L SUBRAMANI ]]> 2017-09-11 03:27:41 UTC https://padlet.com/mdfauzimail/zyp3wiwt1da7/wish/186228422 01DAT16F1006 MUHAMAD ARAAF BIN MAZLAN https://padlet.com/mdfauzimail/zyp3wiwt1da7/wish/186230183 REVIEW QUESTION]]> 2017-09-11 03:43:26 UTC https://padlet.com/mdfauzimail/zyp3wiwt1da7/wish/186230183 https://padlet.com/mdfauzimail/zyp3wiwt1da7/wish/186318544 2017-09-11 12:00:46 UTC https://padlet.com/mdfauzimail/zyp3wiwt1da7/wish/186318544 01DAT16F1007-NURULSYIFAA BINTI MOHD FOUZI https://padlet.com/mdfauzimail/zyp3wiwt1da7/wish/186319253 2017-09-11 12:03:32 UTC https://padlet.com/mdfauzimail/zyp3wiwt1da7/wish/186319253 FOO YOONG HOU 01DAT16F1119 https://padlet.com/mdfauzimail/zyp3wiwt1da7/wish/186319477 9.3 Explain why materiality is important but difficult to apply in practice.

Materiality is important because if financial statements are material misstated, users' decisions may be affected and that may cause them loss. It is difficult to apply because there are many different users of the financial statements. Auditors must must make an assessment of the likely users, and exercise professional judgment in the application of materiality.

9.10 How will the conduct of an audit of a medium-sized company be affected by the company’s being a small part of a large conglomerate as compared with being a separate entity?

If an audit is being performed on a medium sized company that is part of a conglomerate, the auditor must make a materiality judgment based upon the conglomerate. Materiality may be larger for a company that is part of a conglomerate because even though the financial statements of the medium sized company may be misstated, the financial statements of the large conglomerate might still be fairly stated. If the auditor is giving a separate opinion on the medium sized company, the materiality would be lower than for the audit of a conglomerate.
There are also a few factors that will change auditor’s preliminary matrialiy judgement which are the materiality is a relative rather than an absolute concept, a misstatement of a given magnitude might be material for a small company, whereas the same ringgit misstatement could be immaterial for a large one. Next, bases needed for evaluating materiality, it is necessary to have bases for establishing whether misstatement are material. After establishing a primary base, auditors should decide whether the misstatements could materially affect the reasonableness of other bases. Lastly, there are also qualitative factors affect the materiality. For instance, the amount involving fraud are usually considered more important than unintentional errors of equal ringgit amount and misstatements that are immaterial but arising from contractual obligations and trend in earnings may need auditors’ concern.]]> 2017-09-11 12:04:21 UTC https://padlet.com/mdfauzimail/zyp3wiwt1da7/wish/186319477 arlvindersingh98 https://padlet.com/mdfauzimail/zyp3wiwt1da7/wish/186326008 2017-09-11 12:25:28 UTC https://padlet.com/mdfauzimail/zyp3wiwt1da7/wish/186326008 ARLVINDER SINGH 01DAT16F1102 arlvindersingh98 https://padlet.com/mdfauzimail/zyp3wiwt1da7/wish/186327522 9-3) explain why materiality is important but difficult to apply in practice?

It is important because if financial statements are materially misstated,user’s decisions may be affected, and thearby cause financial loss to them. It is difficult to apply because there are often many different users of the financial statements.the auditor must therefore make an assessment of the likely users and the decisions they will make.Materiallity is also difficult to apply because it is a relative concept.The professional auditing standards offer little specific guidance regarding the application of materiality.The auditor must therefore exercise considerable professional judgement in the application of materiality.

 

9-10) how will the conduct of an audit of a medium-sized company be affected by the company’s being a small part of a large conglomerate as compared with it being a separate entity?

The auditor must make a materiality judgement based upon the conglomerate.Materiality may be larger for a company that is part of a conglomerate because even though the financial statement of the medium-sized company may be  misstated.the financial of the large conglomerate might still be fairly stated.If, the auditor is giving a separate opinion on the medium-sized company,the materiality would be lower than for the audit of a conglomerate.


]]> 2017-09-11 12:29:35 UTC https://padlet.com/mdfauzimail/zyp3wiwt1da7/wish/186327522 01DAT16F1058 https://padlet.com/mdfauzimail/zyp3wiwt1da7/wish/186350588 9-3

Materiality is important because if financial statements are material misstated, users' decision may be affected and that may cause them loss. It is dificult to apply because there are many different users of the financial statements. Auditors must make an assessment of the likely users, and exercise professional judgement in he application of materiality.

9-10

if an audit is being performed on a medium sized company that is part of a conglomerate, the auditor must make a materiality judgement based on conglomerate. Materiality may be larger for a company that is part of conglomerate because even though the financial statements of the medium sized company may be misstated, the financial statements of the large conglomerate might still be fairly stated. If,howeer the auditor is giving a separate opinion on the medium sized company, the materiality would be lower than for the audit of a conglomerate]]> 2017-09-11 13:17:59 UTC https://padlet.com/mdfauzimail/zyp3wiwt1da7/wish/186350588 NUR SYAFIQAH BINTI OSMAN(DAT16F1062 https://padlet.com/mdfauzimail/zyp3wiwt1da7/wish/186361473 9-10

if an audit is being performed on a medium sized company that is part of a conglomerate, the auditor must make a materiality judgement based on conglomerate. Materiality may be larger for a company that is part of  conglomerate because even though the financial statements of the medium sized company may be misstated, the financial statements of the large conglomerate might still be fairly stated. If,howeer the auditor is giving a separate opinion on the medium sized company, the materiality would be lower than for the audit of a conglomerate]]> 2017-09-11 13:38:32 UTC https://padlet.com/mdfauzimail/zyp3wiwt1da7/wish/186361473 https://padlet.com/mdfauzimail/zyp3wiwt1da7/wish/186373819 NOR HIDAYAH ELLISA BINTI MOHD SAYUTI
01DAT16F1005]]> 2017-09-11 13:59:55 UTC https://padlet.com/mdfauzimail/zyp3wiwt1da7/wish/186373819 https://padlet.com/mdfauzimail/zyp3wiwt1da7/wish/186376344  | SUBJECT  | AUDITING
 | NAME  | NUR AIN HIDAYAH BINTI MAT SOKRI
 | MATRIC NO | 01DAT16F1063
 

Questions 9-3 and 9-10 

9-3. Explain why materiality is important but difficult to apply in practice ?

Materiality is important because if financial statements are materiality misstated. Users’ decisions may be affected, and thereby cause financial loss to them. It is difficult to apply because there are often many different users of the financial statements. The auditor must therefore make assessment of the likely users and the decisions they will make. Materiality also difficult to apply because it is relative concept. The professional auditing standards offer little specific guidance regarding the application of materiality. The auditor must therefore exercise considerable professional judgment in the application of materiality.

 

9-10. How will the conduct of an audit of a medium-sized company be affected by the company’s being small part of a large conglomerate as compared with it being a separate entity ?

If an audit can be performed on a medium- sized company that is part of a conglomerate. The auditor must make a materiality judgment based upon the conglomerate. Materiality may be larger for a company that is part of a conglomerate because even trough the financial statements of the medium-sized company may be misstated, the financial statements of the large conglomerate might still be fairly stated if, however the auditor is giving a separate opinion on the medium-sized company, the materiality would be lower rhan for the audit of a conglomerate.

]]> 2017-09-11 14:04:05 UTC https://padlet.com/mdfauzimail/zyp3wiwt1da7/wish/186376344 https://padlet.com/mdfauzimail/zyp3wiwt1da7/wish/186378411  | SUBJECT  | AUDITING
 | NAME  | AIDA SYAZANA BINTI MOHMAD NAZRI
 | MATRIC NO | 01DAT16F1004
 

Questions 9-3 and 9-10 

9-3. Explain why materiality is important but difficult to apply in practice ?

Materiality is important because if financial statements are materiality misstated. Users’ decisions may be affected, and thereby cause financial loss to them. It is difficult to apply because there are often many different users of the financial statements. The auditor must therefore make assessment of the likely users and the decisions they will make. Materiality also difficult to apply because it is relative concept. The professional auditing standards offer little specific guidance regarding the application of materiality. The auditor must therefore exercise considerable professional judgment in the application of materiality.

 

9-10. How will the conduct of an audit of a medium-sized company be affected by the company’s being small part of a large conglomerate as compared with it being a separate entity ?

If an audit can be performed on a medium- sized company that is part of a conglomerate. The auditor must make a materiality judgment based upon the conglomerate. Materiality may be larger for a company that is part of a conglomerate because even trough the financial statements of the medium-sized company may be misstated, the financial statements of the large conglomerate might still be fairly stated if, however the auditor is giving a separate opinion on the medium-sized company, the materiality would be lower rhan for the audit of a conglomerate.

]]> 2017-09-11 14:07:18 UTC https://padlet.com/mdfauzimail/zyp3wiwt1da7/wish/186378411 As https://padlet.com/mdfauzimail/zyp3wiwt1da7/wish/186381125 2017-09-11 14:11:54 UTC https://padlet.com/mdfauzimail/zyp3wiwt1da7/wish/186381125 IMAN ASILAH BINTI ROSLI (01DAT16F1118) https://padlet.com/mdfauzimail/zyp3wiwt1da7/wish/186382251 2017-09-11 14:13:49 UTC https://padlet.com/mdfauzimail/zyp3wiwt1da7/wish/186382251 IMAN ASILAH BINTI ROSLI (01DAT16F1118) https://padlet.com/mdfauzimail/zyp3wiwt1da7/wish/186382976 9-3(objective 9-1,9-2) Explain why materiality is important but difficult to apply in practice. 
Answer:
 Materiality is important because if financial statements are materially misstated, users' decisions may be affected, and thereby cause financial loss to them. It is difficult to apply because there are often many different users of the financial statements. The auditor must therefore make an assessment of the likely users and the decisions they will make. Materiality is also difficult to apply because it is a relative concept. The professional auditing standards offer little specific guidance regarding the application of materiality. The auditor must, therefore, exercise considerable professional judgment in the application of materiality.

9-10(objective 9-2) How will the conduct of an audit of a medium-sized company be affected by the company's being a small part of of a large conglomerate as compared with it being a separate entity?
Answer:
If an audit is being performed on a medium-sized company that is part of a conglomerate, the auditor must make a materiality judgment based upon the conglomerate. Materiality may be larger for a company that is part of a conglomerate because even though the financial statements of the medium-sized company may be misstated, the financial statements of the large conglomerate might still be fairly stated. If, however, the auditor is giving a separate opinion on the medium-sized company, the materiality would be lower than for the audit of a conglomerate.]]> 2017-09-11 14:14:58 UTC https://padlet.com/mdfauzimail/zyp3wiwt1da7/wish/186382976 NAZATUL 'IZZATI BINTI MOHD AMDAN (01DAT16F1011) https://padlet.com/mdfauzimail/zyp3wiwt1da7/wish/186389129 9-3 Explain why materiality is important but difficult to apply in practice?
*Materiality is important because if financial statements are material misstated, users' decisions may be affected and that may cause them loss.
*It is difficult to apply because there are many different users of the financial statement. Auditors must make an assessment of the likely users, and exercise professional judgement in the application materiality.

9-10 How will the conduct of an audit of a medium sized company be affected by the company's being a small part of a large conglomerate as compared with it being a separate entity?
*It an audit is being performed on a medium sized company that is part of a conglomerate, the auditor must make a materiality judgement based upon the conglomerate. Materiality may be larger for a company that is part of a conglomerate because even though the financial statements of the medium sized company may be misstated, the financial statements of the larger conglomerate might still be fairly stated. If the auditor is giving a serape opinion on the medium sized company, the materiality would be lower than for the audit of a conglomerate]]> 2017-09-11 14:26:23 UTC https://padlet.com/mdfauzimail/zyp3wiwt1da7/wish/186389129 NUR AIN AZMIRA BT SIDEK+01DAT16F1066 https://padlet.com/mdfauzimail/zyp3wiwt1da7/wish/186404259 9.3 Explain why materiality is important but difficult to apply in practice?
-Materiality is important because if financial statements are material misstated, users' decisions may be affected and that may cause them loss. It is difficult to apply because there are many different users of the financial statements. Auditors must must make an assessment of the likely users, and exercise professional judgment in the application of materiality.

9.10 How will the conduct of an audit of a medium sized company be affected by the company's being a small part of a large conglomerate as compared with it being a separate entity?
-If an audit is being performed on a medium sized company that is part of a conglomerate, the auditor must make a materiality judgment based upon the conglomerate. Materiality may be larger for a company that is part of a conglomerate because even though the financial statements of the medium sized company may be misstated, the financial statements of the large conglomerate might still be fairly stated. If the auditor is giving a serape opinion on the medium sized company, the materiality would be lower than for the audit of a conglomerate.]]> 2017-09-11 14:53:01 UTC https://padlet.com/mdfauzimail/zyp3wiwt1da7/wish/186404259 https://padlet.com/mdfauzimail/zyp3wiwt1da7/wish/186414930  | SUBJECT  | AUDITING
 | NAME  | MUHAMMAD RAFIQI BIN MASRI
 | MATRIC NO | 01DAT16F1126
 
Questions 9-3 and 9-10 
9-3. Explain why materiality is important but difficult to apply in practice ?
Materiality is important because if financial statements are materiality misstated. Users’ decisions may be affected, and thereby cause financial loss to them. It is difficult to apply because there are often many different users of the financial statements. The auditor must therefore make assessment of the likely users and the decisions they will make. Materiality also difficult to apply because it is relative concept. The professional auditing standards offer little specific guidance regarding the application of materiality. The auditor must therefore exercise considerable professional judgment in the application of materiality.
 
9-10. How will the conduct of an audit of a medium-sized company be affected by the company’s being small part of a large conglomerate as compared with it being a separate entity ?
If an audit can be performed on a medium- sized company that is part of a conglomerate. The auditor must make a materiality judgment based upon the conglomerate. Materiality may be larger for a company that is part of a conglomerate because even trough the financial statements of the medium-sized company may be misstated, the financial statements of the large conglomerate might still be fairly stated if, however the auditor is giving a separate opinion on the medium-sized company, the materiality would be lower rhan for the audit of a conglomerate.
]]> 2017-09-11 15:12:33 UTC https://padlet.com/mdfauzimail/zyp3wiwt1da7/wish/186414930 Muhammad Yusra Naim B. Mohd Zulkeple Amin 01DAT16F1018 https://padlet.com/mdfauzimail/zyp3wiwt1da7/wish/186424681 Review Question]]> 2017-09-11 15:30:59 UTC https://padlet.com/mdfauzimail/zyp3wiwt1da7/wish/186424681 Muhammad Yusra Naim B. Mohd Zulkeple Amin 01DAT16F1018 https://padlet.com/mdfauzimail/zyp3wiwt1da7/wish/186426514 2017-09-11 15:34:08 UTC https://padlet.com/mdfauzimail/zyp3wiwt1da7/wish/186426514 01dat16f10 https://padlet.com/mdfauzimail/zyp3wiwt1da7/wish/186428283 9-3
9-10]]> 2017-09-11 15:37:37 UTC https://padlet.com/mdfauzimail/zyp3wiwt1da7/wish/186428283 Nagendiri Surendren (01DAT16F1120) https://padlet.com/mdfauzimail/zyp3wiwt1da7/wish/186485365 2017-09-11 17:25:23 UTC https://padlet.com/mdfauzimail/zyp3wiwt1da7/wish/186485365