Auditing and Assurance Services 1st Edition by Iris Stuart

Exercise 24

Calculating materiality. Dell Computers reported total revenue of $49,205,000,000 and total assets of $23,215,000,000 in 2005.
a. Calculate materiality for the company using the worksheet in this chapter.
b. How will the auditor use this materiality level in planning the audit
c. Describe how the materiality level might be used in evaluating audit evidence.
d. How does the materiality level impact the audit opinion