Recent content by Jamesaccountant

  1. J

    To those who have experience in audit

    RMM stands for risk of material misstatements. Okay noted. Thanks for your tips!
  2. J

    To those who have experience in audit

    Thank you for your reply. In a nut shell, the selection of tests and the amounts (extent) of tests such as sample siz are determined by senior auditors based on RMM of the assertions? Thank you in advance.
  3. J

    To those who have experience in audit

    Hi, I just started working as an associate for an audit firm but I got some question. When conducting substantive tests, how do you determine what test to do? or how much in detail we do a test? For example, when testing PPE, we can inspect the asset in person to verify the existence, which I...
  4. J

    Regarding materiality thresholds in AUDIT

    Thank you for your kind reply Mr. UncleSam. If you could answer the 3 questions below, that would be really helpful. 1. Which way of evaluation misstatements is correct? (1) Aggregating all the misstatements that are above CT and compare it to the Materiality for the FS, or (2) Aggregating...
  5. J

    Regarding materiality thresholds and how to determine your audit opinion

    Regarding materiality, the textbook says that there are three materiality thresholds we use in audit. The first is "Materiality threshold for the FS as a whole", the second is "Materiality threshold for each account", and the last is "Tolerable misstatement (or CT)." As a general flow, perform...
  6. J

    Regarding materiality thresholds in AUDIT

    Regarding materiality, the textbook says that there are three materiality thresholds we use in audit. The first is "Materiality threshold for the FS as a whole", the second is "Materiality threshold for each account", and the last is "Tolerable misstatement (or CT)". As a general flow, perform...
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