Suppose that during the audit of UO 2015 financial statements, the auditors discovered that the 2015...

Suppose that during the audit of UO 2015 financial statements, the auditors discovered that the 2015 ending inventory had been overstated by $24,000 and that the 2015 beginning inventory was overstated by $18,000. Purchases were recorded at the right amount. Before correction, 2015 pretax income had been computed as $365,385. What should be reported as the correct 2015 pretax income before taxes? (Please use the numbers at face value, do not worry about the whole dollar or in thousands.)

Expert Solution

ekkarill92 answered 1 year ago

Auditors must obtain sufficient appropriate audit evidence to issue an audit opinion on the financial statements....

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