1.For the current year audit of your client's financial statements, you designed the nature, timing, and extent of further audit procedures to be performed based on the review of your client and its environment. Your review also includedyour client's internal control system. Based on your review, you assessed the risk of material misstatements to the financial statements, whether due to error or fraud.

After conducting the above risk assessment procedures, the audit program for your audit of 2018 includes the following changes from the audit program used for 2017:

1.Your client's company has a calendar-year end and only operates on weekdays.

2. In order to conduct audit procedures for your search for unrecorded liabilities, your

assessmentofmateriality/scope for this area is $6,000.

3. Adjustments are only recorded for items equal to or exceeding the materiality level.

4. The last day of audit fieldwork is estimated to be February 1, 2019.

To start audit testing, you reviewed items reflected in your client's check registerand noted that the itemslisted below are not recorded in the Accounts Payable Subsidiary Ledger as of December 31, 2018. Your task is to determine if each potential liability is recorded in the proper accounting period. In addition, you need to determine the amount that should be journalized as a correcting entry, if any. If no action is required, just enter $0.

Required:

Indicate if you believe that any action or adjustment is required for each of the check numbers listed below that were taken from the client's check register.

Vendor Check # Date Amount Description Blue Water Inc. 1333 1/6/2019 $3,600 Office water coolers delivered on 12/31/18 Devin Brown LLP 1334 1/6/2019 $6,100 Corporate legal services during December, 2018 Star Telephone, Inc. 1335 1/8/2019 $6,600 December 2018 telephone & internet service Payroll Expenses 1336 1/10/2019 $26,500 Bi-weekly payroll for 12/25/18 through 1/7/19 Field Trucking, Inc. 1337 1/10/2019 $46,601 Trucking services for 12/4/18 through 1/3/19. Deliveries are made evenly through the period Petty Cash 1338 1/17/2019 $2,012 Replenish petty cash box Adams Equipment 1339 1/22/2019 $12,500 New forklift ordered on 12/18/19 & delivered on 12/29/19 Johnson Supply Co. 1340 1/23/2019 $12,550 Goods ordered 12/20/19 and delivered on 12/31/19 Payroll Expenses 1341 1/24/2019 $26,500 Bi-weekly payroll for 1/8/19 through 1/21/19 Devin Brown LLP 1342 2/6/2019 $6,900 Legal services - January, 2019

Check # Adjustment needed? Yes/No Amount 1333 1334 1335 1336 1337 1338 1339 1340 1341 1342