1. Of the balance of $142,000, $20,000 is incorrect because it represents goods that we didnt receive until January 5, 2021. Follow-up: Inspection of shipping records reveals that the item was shipped on December 31, 2019 fob destination.

2. Of the accounts $160,000 balance, we only owe $155,200 as $4,800 (3% of the total) is not due because the KeyBoards salesperson told us that she would give us a special discount beyond the normal. Follow-up: While inspection of the sales agreement indicated no such discount arrangement, discussions with Carter Addison (controller) and Joshua Caleb (president) indicated that the salesperson had inappropriately granted such a discount to the client. On January 10, 2021, they processed the discount and credited the account for $4800.

3. We will owe the balance of $95,000 when we sell the goods for KeyBoard. We are currently holding the goods on consignment. Follow-up: Client states that the goods were shipped on December 29, 2020 on consignment and their system properly triggers a sales invoice when goods are shipped.

4.The balance of $140,000 is incorrect because we paid that amount in full on December 24, 2020. Follow-up: An analysis of the cash receipts journal revealed that the check had been received in the mail on January 2^nd and deposited. Also noted the check was listed on the deposit slip for January 2^nd.

Conf #	Book Value	Audit Value	Difference
1
2
3
4