Expectation to the clients estimate summarized in

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expectation to the client’s estimate summarized in Schedule B for the allowance for bad debts. Does the amount you estimated agree with the client’s estimate in Schedule B? If it does not agree, by how much does it differ and is that difference material? The carrying of $2500 threshold, which was established by the audit plan, comes into play when comparing the client’s estimate summarized in Schedule B for the allowance of bad debts. Based on the information gathered, my calculation with the reserve amount was $6,902.47. The increase in the reserve amount of $1,353.47 is due to the added reserve associated with Golden Holdings. The difference with my reserve estimate and the client’s estimate is not material, again because of the $2,500 threshold established by the audit plan. [d] Determine the adjusting journal entries needed, if any, to adjust management’s estimate of the reserve to your audited estimate and post your entries in the Adjustments column in Schedule A. There is no need in adjusting journal entries, because the new reserve estimate is under the material threshold.
[e] Based on your reading of the professional standards in requirement

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