“You are the manager of the ex

“You are the manager of the examination engagement of thefinancial projection of Honey’s Health Foods as of December 31,2018, and for the year then ended. The audit senior, Currie, hasprepared the following draft of the examination report:”

To the Board of Directors of Honey’s Health Foods:We haveexamined the accompanying projected balance sheet and statements ofincome, retained earnings, and cash flows of Honey’s Health Foodsas of December 31, 2018, and for the year then ending. Ourexamination was made in accordance with standards for anexamination of a projection and accordingly included suchprocedures as we considered necessary to evaluate the assumptionsused by management.In our opinion, the accompanying forecast ispresented in conformity with guidelines for presentation of aforecast established by the American Institute of Certified PublicAccountants, and the underlying assumptions provide a reasonablebasis for management’s projection. However, there will usually bedifferences between the projected and actual results because eventsand circumstances frequently do not occur as expected, and thosedifferences may be material.”


The auditor is responsible for evaluation of reasonableness ofmanagement estimate. As estimates are based on subjective as wellas objective factors, it may be difficult for management toestablish controls over them. Accordingly, when planning andperforming procedures to evaluate accounting estimates, the auditorshould consider, with an attitude of professional skepticism, boththe subjective and objective factors.

The risk of material misstatement of accounting estimatesnormally varies with the complexity and subjectivity associatedwith the process, the availability and reliability of relevantdata, the number and significance of assumptions that are made, andthe degree of uncertainty associated with the assumptions

Auditor should analysze, evaluate the reasonableness andconsider available documentation.

In cases, where there is material difference between estimateand actual amounts, an auditor should understand the source of suchdifferences. If auditor understands and conclude that suchdifferences are not due to error of estimation than auditor oughtnot to perform any additional procedure.

"Our Prices Start at $11.99. As Our First Client, Use Coupon Code GET15 to claim 15% Discount This Month!!"
Calculate the price
Make an order in advance and get the best price
Pages (550 words)
*Price with a welcome 15% discount applied.
Pro tip: If you want to save more money and pay the lowest price, you need to set a more extended deadline.
We know how difficult it is to be a student these days. That's why our prices are one of the most affordable on the market, and there are no hidden fees.

Instead, we offer bonuses, discounts, and free services to make your experience outstanding.
How it works
Receive a 100% original paper that will pass Turnitin from a top essay writing service
step 1
Upload your instructions
Fill out the order form and provide paper details. You can even attach screenshots or add additional instructions later. If something is not clear or missing, the writer will contact you for clarification.
Pro service tips
How to get the most out of your experience with brilliantassignmenthelp.com
One writer throughout the entire course
If you like the writer, you can hire them again. Just copy & paste their ID on the order form ("Preferred Writer's ID" field). This way, your vocabulary will be uniform, and the writer will be aware of your needs.
The same paper from different writers
You can order essay or any other work from two different writers to choose the best one or give another version to a friend. This can be done through the add-on "Same paper from another writer."
Copy of sources used by the writer
Our college essay writers work with ScienceDirect and other databases. They can send you articles or materials used in PDF or through screenshots. Just tick the "Copy of sources" field on the order form.
See why 20k+ students have chosen us as their sole writing assistance provider
Check out the latest reviews and opinions submitted by real customers worldwide and make an informed decision.
Customer reviews in total
Current satisfaction rate
3 pages
Average paper length
Customers referred by a friend
15% OFF your first order
Use a coupon FIRST15 and enjoy expert help with any task at the most affordable price.
Claim my 15% OFF Order in Chat

Sometimes it is hard to do all the work on your own

Let us help you get a good grade on your paper. Get professional help and free up your time for more important courses. Let us handle your;

  • Dissertations and Thesis
  • Essays
  • All Assignments

  • Research papers
  • Terms Papers
  • Online Classes