If $15,000 is considered to be material to the income statement, but $25,000 is material to the balance sheet, the auditor should set overall materiality at which of the following dollar amounts?

a. $20,000

b. $25,000

c. $40,000

d. $15,000

Question

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3 December, 07:42

If $15,000 is considered to be material to the income statement, but $25,000 is material to the balance sheet, the auditor should set overall materiality at which of the following dollar amounts?

a. $20,000

b. $25,000

c. $40,000

d. $15,000

+3

Answers (1)

Know the Answer?

Eden Oconnor · Answer 1

The correct option is d.

Explanation:

It is given that $15,000 is considered to be material to the income statement, but $25,000 is material to the balance sheet.

Material to the income statement = $15,000

Material to the balance sheet = $25000

The auditor should set overall materiality according to the income statement.

The auditor should set overall materiality at $15,000.

Therefore the correct option is d.

If $15,000 is considered to be material to the income statement, but $25,000 is material to the balance sheet, the auditor should set overall materiality at which of the following dollar amounts?a. $20,000b. $25,000c. $40,000d. $15,000

If $15,000 is considered to be material to the income statement, but $25,000 is material to the balance sheet, the auditor should set overall materiality at which of the following dollar amounts?

a. $20,000

b. $25,000

c. $40,000

d. $15,000