When we know there is an error of material misstate of a particular assertion, such as cut off in revenue, we should design a procedure to best estimate the error. Since it is a known error of material misstatement, we are not to test that no error.
The procedure is specific to find out the error and extrapolate to the whole population.
When there was a judgement made in prior year without concrete evidence of support. The audit should have qualified it. When in subsequent year, the judgement is changes with the intention to correct
Under US GAAP, the carrying amount of the assets is compared to the undiscounted future cash flow of the assets generated. If the amount of undiscounted cash flow is highr than carrying amount, no im
When apply discount on lack of marketability (DLOM) and lack of control (DLOC) on enterprise value (EV), it is a multiple of EV x (1-DLOM) x (1-DLOC). But apply the discount on Equity value would lowe