'ABC Wholesalers Ltd Essay\r'

'You are nearing completion of the 31 celestial latitude 2015 canvas of rudiment Wholesalers Ltd. The figures below strike been extracted from the final draft financial report.\r\nDuring you round of the audit files, you note the following items preserve on the summary of audit differences. 1. alphabet Wholesalers has been involved in a long-running difference of opinion with the revenue authorities in affinity to the amount of sales tax collectible on certain lines of merchandise. The case was fixed this year in favour of the taxation authorities. The court ruled that rudiment Wholesalers, as well as paying the bang-up taxes, must pay a non-tax-deductible okay of $420,000. 2. Sales cut-off at one of ABC Wholesaler’s parentages was incorrect, resulting in a immense sale of blood line make early in January 2015 be preserve in the 31 December 2014 year-end.\r\nThe price price of the inventory sold was $250,000. ABC Wholesalers marks up inventory by 40%. 3. Pu rchases cut-off at the same store was also incorrect, resulting in a large purchase of inventory made in late December not being recorded until January 2015. The invoice price of the inventory purchased was %5,950,000. You also note that the planning corporeality level was set by the audit manager at $200,000. Question:\r\na) consider items 1-3 independently. State whether the amounts involved would be considered visible for the purpose of issuing an auditor’s report. Give reasons. b) Explain the relevance, if any, of the planning materiality level to your decisions in a).\r\n'