Column 1: Account | Column 2: Audit Procedure and Evidence | Column 3: Most Directly Related Auditor Bias | Column 4: Bias Definition | Column 5: Evaluate how the evidence from the audit procedure is susceptible to auditor bias and additional testing the auditors should perform. |
Valuation of Meg’s Mutts mobile application (the “app”) | L&J reviewed MM’s app value presented on its balance sheet and initially judged the valuation to be reasonable. To test the valuation of the app, L&J recalculated the value of the app by applying a valuation methodology compliant with financial reporting guidance for valuing software. A significant difference between MM’s valuation of the app and L&J’s calculation of the app’s value was detected. Because L&J initially judged MM’s valuation of the app to be reasonable, they are considering if their calculation of the app’s value suggests a valuation different from the initial amount reported by MM. |

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