Case 7.1 Anne Aylor Essay

1969 Words Jul 4th, 2013 8 Pages
Planning Materiality c a S eS inc lu de d in t hiS Se ction

7
. . . . . . . . . . . . . . . . . . . . . . . . . . . .

7.1 Anne Aylor, Inc.

229

Determination of Planning Materiality and Tolerable Misstatement

ot he r c aSe S t h at diScuSS topicS related to thiS Section 5.6

Scoping and Evaluation Judgments in the Audit of Internal Control over Financial Reporting 12.1 EyeMax Corporation . . Evaluation of Audit Differences
. . . . . . . . . . . . . . . . . . . . . . .

Sarbox Scooter, Inc.

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

185

369 379

12.2 Auto Parts, Inc. . . . . . . . . . . . . . . . . . . . . . . . . Considering Materiality When Evaluating Accounting Policies and Footnote Disclosures
…show more content…
Instructors may want to consider simplifying this case assignment by dividing it into two parts. Part one could require students to determine planning materiality while part two could require students to determine tolerable misstatement for individual balance sheet accounts. The approach we recommend for this assignment is to first ask students to review the case assignment materials and conduct a preliminary “in-class” discussion addressing question 1. Students are then asked to complete question 2 outside of class. Once students have completed this assignment, it is important to discuss the solution with them to maximize their learning experience. Students will commonly provide diverse answers for this assignment. This provides an opportunity to highlight the subjective nature of some of these judgments as well as to point out that many audit approaches would be considered reasonable. Cooperative learning activities can easily be adapted to this assignment. The cooperative learning activity called Roundtable could be used for the preliminary in-class discussion (requirement 1). The basic process for this activity is to have students meet in small groups to state aloud and write down on a single sheet of paper their ideas to a question asked by the instructor. For example, students could be asked to explain why different materiality bases are considered when

More about Case 7.1 Anne Aylor Essay