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Graded Audit Task #1

Graded Audit Task #1

Consolidated Construction Inc., an issuer, is a construction company with annual revenues of $20 million. As the audit senior engaged on Consolidated Construction's Year 6 financial audit, you have been asked to calculate materiality as the engagement team plans the audit.  

Using the exhibits, perform a quantitative and qualitative analysis. In Part 1, determine overall materiality. In column B, calculate and enter the current ratio rounded to two decimal places. In column C, select the calculation approach the auditor should use. In column D, calculate and enter audit materiality. In Part II, perform a qualitative analysis and identify areas of qualitative concern for the Year 6 audit. There are four areas of qualitative concern. 

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