Anne Aylor Case Solution (Audit)

In: Business and Management

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Planning
Materiality
C a s es inc lu de d in t his Se ction

7.1 Anne Aylor, Inc.

. . . . . . . . . . . . . . . . . . . . . . . . . . . .

229

Determination of Planning Materiality and
Tolerable Misstatement

O t he r c ase s t h at discuss topics rel ated to this section
5.6

Sarbox Scooter, Inc.

. . . . . . . . . . . . . . . . . . . . . . . . . .

185

Scoping and Evaluation Judgments in the Audit of Internal
Control over Financial Reporting

12.1 EyeMax Corporation . . . Evaluation of Audit Differences

. . . . . . . . . . . . . . . . . . . . . . .

369

12.2 Auto Parts, Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 379 Considering Materiality When Evaluating Accounting Policies and
Footnote Disclosures

Instructor Resource Manual — Do Not Copy or Redistribute

Instructor Resource Manual — Do Not Copy or Redistribute

Anne Aylor, Inc.

C a s e

7.1

Determination of Planning Materiality and Tolerable Misstatement

Mark S. Beasley · Frank A. Buckless · Steven M. Glover · Douglas F. Prawitt
Ins tr uc t ional O b je c t ive s
[1] To

provide experience with establishing planning materiality. [2] To provide experience with establishing tolerable misstatement for individual financial statement accounts. [3] To illustrate factors considered when establishing planning materiality.

To illustrate different materiality bases considered when establishing planning materiality.
[5] To illustrate factors considered when determining tolerable misstatement for individual accounts.
[6] To illustrate reasons why the sum of tolerable misstatements commonly exceeds planning materiality.
[4]

KEY FACTS
ƒƒ Anne Aylor, Inc. (Anne Aylor) is a publicly traded company…...

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