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Read the case “Eyemax Corporation: Evaluation of Audit Differences” that I attach. This case study may be related to chapters 10 & 17, then just need to answer these two questions.
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“Users of financial statements can expect that if an unqualified opinion is issued by the auditor, there will be no errors, misstatements, or misapplications of Generally Accepted Accounting Principles in the financial statements and related footnotes.” React to this statement and include a discussion of how materiality relates to it.
Prepare the journal entries that would be necessary to adjust for each of the four misstatements provided in the case. Evaluate the total dollar effect of the adjustments on Total Revenues, Total Expenses, Net Income, Total Current Assets, Total Assets, and Total Liabilities. (This requirement can be handwritten, and can be placed on another sheet of paper that can be excluded from your page count.)
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