Explain why Ling set performance materiality for inventory at a lower amount as compared to accounts receivable, PP&E, and other assets.
Ling, an audit manager, is planning the audit of Modern Technologies, Inc. (MT, Inc.), a manufacturer of electronic components. This is the first year that Ling’s audit firm has performed the audit for MT, Inc. Ling set the preliminary judgment about materiality for the financial statements as a whole at $66,000 and is now in […]