Clint Services Corporation

copyright 199
ISBN 0-324-0368-0

Case Teaching Package
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Length
This case is 4 pages in length and its case teaching package is 6 pages.

Abstract

You are a staff accountant employed by Williams & Stein CPA firm. You have been assigned to the Clint Services Corporation audit for the year ended December 31, 2000. The engagement senior informs you that materiality for this engagement is $750,000. Such materiality will be utilized to determine the amount of testing performed as well as significant fluctuations in analytical testing procedures. The senior informs you that for this client, a threshold of 10% of materiality is used for analytical review purposes, or 10% of the recorded balance if the balance is less than materiality. No specific risks have been identified for this engagement. Specifically, you are requested to audit the Payroll Expense Accounts and the related accrual accounts as of December 31, 2000.

Key Words

accounting, materiality, audit, testing procedures, analytical procedures