Case 7.1 Anne Aylor
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
. . . . .
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 inS tr uc t ional o b je c t ive S
[1] [2]
Mark S. Beasley · Frank A. Buckless · Steven M. Glover · Douglas F. Prawitt
[3]
To provide experience with establishing planning materiality. To provide experience with establishing tolerable misstatement for individual financial statement accounts. To illustrate factors considered when establishing planning materiality.
[4] [5] [6]
To illustrate different materiality bases considered when establishing planning materiality. To illustrate factors considered when determining tolerable misstatement for individual accounts. To illustrate reasons why the sum of tolerable misstatements commonly exceeds planning materiality.
KEY FACTS
Anne Aylor, Inc. (Anne Aylor) is a publicly traded company (New York Stock Exchange) that had 60,879,663 shares of common stock outstanding with a trading price of $24.42 as of the close of business on March 1, 2008. Anne Aylor is a leading national specialty retailer of betterquality women’s apparel, shoes,
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
. . . . .
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 inS tr uc t ional o b je c t ive S
[1] [2]
Mark S. Beasley · Frank A. Buckless · Steven M. Glover · Douglas F. Prawitt
[3]
To provide experience with establishing planning materiality. To provide experience with establishing tolerable misstatement for individual financial statement accounts. To illustrate factors considered when establishing planning materiality.
[4] [5] [6]
To illustrate different materiality bases considered when establishing planning materiality. To illustrate factors considered when determining tolerable misstatement for individual accounts. To illustrate reasons why the sum of tolerable misstatements commonly exceeds planning materiality.
KEY FACTS
Anne Aylor, Inc. (Anne Aylor) is a publicly traded company (New York Stock Exchange) that had 60,879,663 shares of common stock outstanding with a trading price of $24.42 as of the close of business on March 1, 2008. Anne Aylor is a leading national specialty retailer of betterquality women’s apparel, shoes,