2% 3 11:50 AM III + You are the auditors of Ty' apollo Limited, a manufacturing company. You are assigned to complete the test of the expenses and have been presented with the attached schedule of expenses for the year ended March 31,2021 and the comparatives for 2020. The audit supervisor has set the materiality level at $55,000. Required: Perform the steps to be carried out in applying analytical procedures to audit the expenses. Prepare the worksheet. Identify at least five accounts for further investigation and briefly state why and the procedure you will employ in carrying out the investigation. Ty'apollo Limited Income Statement Accounts - All Divisions For the Year Ended March 31, 2021 2021 2020 $ $ Sales 153,918,731 184,103 Sales Returns and Allowances Cost of Sales Salaries-Management Salaries-Office Licensing and certification fees Security Insurance 109,284,780 2,081,266 315,169 190,650 450,603 93,197 148,764,555 178,518 106,255,499 2,387,993 296,681 172,883 637,580 103.842 29,453 23,721 162,512 6,989 198,009 Medical benefits Advertising Business publications Property taxes Bad debts Depreciation expense Accounting fees Salaries-Sales 5,555 178,009 1,034,060 22,585 841,699 5,336,783 273,956 4,641,982 297,777 15,327,777 14,970,669 29,453 198,009 23,721 162,512 6,989 22,585 841,699 5,555 178,009 1,034,060 5,336,783 4,641,982 273,956 297,777 14,970,669 15,327,777 491,794 1,113,539 595,389 1,339,626 5,340,271 4,891,065 29,771 27,649 2,657,889 2,937,730 Medical benefits Advertising Business publications Property taxes Bad debts Depreciation expense Accounting fees Salaries-Sales Wages Rental Wages-Mechanics Wages-Warehouse Garbage collection Payroll benefits Rent- Warehouse Telephone Utilities Postage Linen service Repairs and maintenance Cleaning service Legal service Fuel Travel and entertainment Pension expense Office supplies Miscellaneous Other Expense-Interest 802,855 764,346 32,402 45,173 267,005 262,393 89,763 133,518 17,282 12,350 168,405 166,985 81,589 190,540 89,800 396,016 186,547 203,389 228,555 149,828 341,192 103,842 237,350 148,340 105,931 300,188 2,181,948 302,447,300 2,299,217 295,651,758 2% 3 11:50 AM III + You are the auditors of Ty' apollo Limited, a manufacturing company. You are assigned to complete the test of the expenses and have been presented with the attached schedule of expenses for the year ended March 31,2021 and the comparatives for 2020. The audit supervisor has set the materiality level at $55,000. Required: Perform the steps to be carried out in applying analytical procedures to audit the expenses. Prepare the worksheet. Identify at least five accounts for further investigation and briefly state why and the procedure you will employ in carrying out the investigation. Ty'apollo Limited Income Statement Accounts - All Divisions For the Year Ended March 31, 2021 2021 2020 $ $ Sales 153,918,731 184,103 Sales Returns and Allowances Cost of Sales Salaries-Management Salaries-Office Licensing and certification fees Security Insurance 109,284,780 2,081,266 315,169 190,650 450,603 93,197 148,764,555 178,518 106,255,499 2,387,993 296,681 172,883 637,580 103.842 29,453 23,721 162,512 6,989 198,009 Medical benefits Advertising Business publications Property taxes Bad debts Depreciation expense Accounting fees Salaries-Sales 5,555 178,009 1,034,060 22,585 841,699 5,336,783 273,956 4,641,982 297,777 15,327,777 14,970,669 29,453 198,009 23,721 162,512 6,989 22,585 841,699 5,555 178,009 1,034,060 5,336,783 4,641,982 273,956 297,777 14,970,669 15,327,777 491,794 1,113,539 595,389 1,339,626 5,340,271 4,891,065 29,771 27,649 2,657,889 2,937,730 Medical benefits Advertising Business publications Property taxes Bad debts Depreciation expense Accounting fees Salaries-Sales Wages Rental Wages-Mechanics Wages-Warehouse Garbage collection Payroll benefits Rent- Warehouse Telephone Utilities Postage Linen service Repairs and maintenance Cleaning service Legal service Fuel Travel and entertainment Pension expense Office supplies Miscellaneous Other Expense-Interest 802,855 764,346 32,402 45,173 267,005 262,393 89,763 133,518 17,282 12,350 168,405 166,985 81,589 190,540 89,800 396,016 186,547 203,389 228,555 149,828 341,192 103,842 237,350 148,340 105,931 300,188 2,181,948 302,447,300 2,299,217 295,651,758
