1. Identify high inherent risk assertions for purchases transactions and accounts payable.

2. Evaluate inherent risk for purchase transactions and accounts payable. Explain why you have identified various assertions as high or maximum risk for accounts payable.

Cloud 9 Trial Balance October 31, 2022 Debit Credit $ 13,446,154 70,485,625 $ 704,856 55,100,000 13,419,231 2,857,692 9,265,385 103,803,846 39,761,538 3,723,007 October 31, 2021 Debit Credit $ 6,123,884 64,867,910 $ 648,679 57,900,000 13,805,769 3,584,615 6,446,154 97,576,923 35,207,692 3,851,923 9,557,692 8,410,849 Cash and cash equivalents Accounts receivable Allowance for doubtful accounts Inventory Investments (derivatives) Deferred income taxes (current) Prepaid expenses and other current assets Property, plant, and equipment Accumulated depreciation Identifiable intangible assets and goodwill Accumulated amortization Deferred income taxes and other assets (noncurrent) Current portion of long-term debt Notes payable Accounts payable Accured liabilities Income taxes payable Long-term debt Deferred income taxes and other liabilities (noncurrent) Common stock at par value Capital stock in excess of par value Unearned stock compensation Accumulated other comprehensive income Beginning retained earnings Dividends Repurchases of common stock Revenue Cost of sales Selling and administrative Interest expense Other expense Income tax expense Totals 2,115,385 21,376,923 14,986,457 25,803,846 2,211,539 23,661,538 4,915,384 111,538 19,415,385 300,125 34,823,077 22,561,538 24,150,000 3,726,923 17,119,106 4,330,769 107,692 16,484,615 253,846 5,011,538 480,769 4,746,154 122,857,692 98,150,473 3,866,838 4,627,381 3,299,423 2,939,393 277,338,461 269,442,308 169,346,154 79,092,308 1,438,461 453,846 9,511,538 $555,260,542 163,003,846 78,246,154 1,773,077 757,692 9,238,462 $527,052,997 $555,260,542 $527,052,997