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Category: Business and Industry
Date Submitted: 11/01/2012 08:48 AM
7
Planning
Materiality
C A S E S I NC LU DE D IN T HI S S E CTION
7.1 A nne Aylor, Inc.
............................
229
Determination of Planning Materiality and
Tolerable Misstatement
O T HE R C A S E S T HAT DI S CU SS T OPIC S R ELATED TO THI S S ECTION
5.6
Sarbox Scooter, Inc.
..........................
185
Scoping and Evaluation Judgments in the Audit of Internal
Control over Financial Reporting
12.1 EyeMax Corporation . .
Evaluation of Audit Differences
.......................
12.2 Auto Parts, Inc. . . . . . . . . . . . . . . . . . . . . . . . .
Considering Materiality When Evaluating Accounting Policies and
Footnote Disclosures
INSTRUCTOR RESOURCE MANUAL — DO NOT COPY OR REDISTRIBUTE
.....
369
379
INSTRUCTOR RESOURCE MANUAL — DO NOT COPY OR REDISTRIBUTE
CASE
Anne Aylor, Inc.
7.1
Determination of Planning Materiality
and Tolerable Misstatement
M
S. B
F
A. B
S
M. G
D
F. P
I N S TR U C T IO NAL O B JE C T IVE S
[1]
[2]
[3]
To provide experience with establishing planning
materiality.
To provide experience with establishing tolerable
misstatement for individual nancial statement
accounts.
To illustrate factors considered when establishing
planning materiality.
[4]
[5]
[6]
To illustrate di erent 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, and accessories
At the end of fiscal 2007, Anne Aylor operated...