Auditing

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Answer the following in 175 or more words. Provide example if applicable.
 
 
During an audit, you were assigned to supervise a new intern. This intern was assigned to test the 10,000 billing invoices for the year, and had randomly selected the first 25 invoices for the first month of each quarter to obtain a sample size of 100 invoices. The intern noted a total of $100 in variances, and since the materiality threshold is $500, she determined that the variance was immaterial to the financial statements. How would you respond to the intern's work and testing methodology?

 

    • 10 years ago
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