SEC Staff Accounting Bulletin No. 99 Materiality Assignment

SEC Staff Accountin" rel="nofollow">ing Bulletin" rel="nofollow">in No. 99 Materiality Assignment Paper details: Please read in" rel="nofollow">instructions carefully and need to download some documents for that. Please meet all of requirement of it and answer each question separately. SEC Staff Accountin" rel="nofollow">ing Bulletin" rel="nofollow">in No. 99 Materiality Assignment This assignment requires that you log onto the Securities and Exchange Commission’s web site (www.sec.gov). Once you are on the web site, scroll down to the section labeled “Staff Interpretations” and then click on the lin" rel="nofollow">ink titled “Staff Accountin" rel="nofollow">ing Bulletin" rel="nofollow">ins.” Then, on the next screen you should scroll down until you see the lin" rel="nofollow">ink to “SAB No. 99”, dated August 12, 1999. Click on the SAB 99 lin" rel="nofollow">ink. Use this document to answer the questions noted below. If you have any trouble with the above in" rel="nofollow">instructions, try this address to locate SAB No. 99: http://www.sec.gov/in" rel="nofollow">interps/account/sab99.htm. Read SAB No. 99 to answer these questions: ? Who is responsible for issuin" rel="nofollow">ing Staff Accountin" rel="nofollow">ing Bulletin" rel="nofollow">ins? ? What types of companies does SAB No.99 apply to? ? What is the main" rel="nofollow">in purpose of SAB No. 99 (e.g., Why did the SEC deem it necessary to issue the SAB?)? ? What does SAB No. 99 conclude about the use of a numerical threshold in" rel="nofollow">in establishin" rel="nofollow">ing materiality? How should such a threshold be used? ? Briefly summarize in" rel="nofollow">in your own words the FASB Statement of Fin" rel="nofollow">inancial Accountin" rel="nofollow">ing Concepts No. 2 defin" rel="nofollow">inition of “materiality.” ? In assessin" rel="nofollow">ing the “total mix” of in" rel="nofollow">information surroundin" rel="nofollow">ing a misstatement, what does the Staff of the SEC believe management and an auditor should consider? ? Give two examples from SAB No. 99 of a quantitatively immaterial misstatement that might be deemed “material” from a qualitative perspective. ? Assume that you found a misstatement in" rel="nofollow">in in" rel="nofollow">inventory that you believe materially overstates in" rel="nofollow">inventory and total assets. Then, assume that you found a second misstatement that you believe materially understates accounts receivable and total assets by approximately the same amount as the in" rel="nofollow">inventory misstatement. How does SAB No. 99 address management’s and the auditor’s ability to let the two misstatements offset one another without either misstatement bein" rel="nofollow">ing corrected in" rel="nofollow">in the fin" rel="nofollow">inancial statements?