2-4-a Oceanview Marine Company Preliminary Analytical Procedures: Identification of Accounts with Unexpected Fluctuations December 31, 2018 Instructions: In the space provided below, identify those accounts that you believe are most likely to be materially is the is expected. Materiality reflects the size of the potential misstatement in relation to net income and other financial statement measures. Include your evaluation as to why the account balance differs from your expectations. Balance Sheet Accounts: Identify balance sheet accounts that you believe are most likely to be misstated, and evaluate why the fluctuation (or lack thereof) is significant. Account 2018 Bal. 2017 Bal. Evaluation Allowance for doubtful 116,636 CR 116,636 CR Allowance for doubtfiil accounts is based on ending A/R balance. Ending A/R balance increased by over 360,000 from prior year, but allowance for doubtful accounts remained constant. accounts Income Statement Accounts: Identify income statement accounts that you believe are most likely to be misstated, and evaluate why the fluctuation (or lack thereof) is significant. Account 2018 Bal. 2017 Bal. Evaluation Current workpapers--audit planning + Pag 2-4-5 Oceanview Marine Company Preliminary Analytical Procedures: Identification of Accounts with Unexpected Fluctuations (continued) December 31, 2018 Divisional Income Statement Accounts: Identify three divisional income statement accounts that you believe are most likely to be misstated, and evaluate why the fluctuation (or lack thereof) is significant. Account & Division 2018 Bal. 2017 Bal. Evaluation 2-4-a Oceanview Marine Company Preliminary Analytical Procedures: Identification of Accounts with Unexpected Fluctuations December 31, 2018 Instructions: In the space provided below, identify those accounts that you believe are most likely to be materially is the is expected. Materiality reflects the size of the potential misstatement in relation to net income and other financial statement measures. Include your evaluation as to why the account balance differs from your expectations. Balance Sheet Accounts: Identify balance sheet accounts that you believe are most likely to be misstated, and evaluate why the fluctuation (or lack thereof) is significant. Account 2018 Bal. 2017 Bal. Evaluation Allowance for doubtful 116,636 CR 116,636 CR Allowance for doubtfiil accounts is based on ending A/R balance. Ending A/R balance increased by over 360,000 from prior year, but allowance for doubtful accounts remained constant. accounts Income Statement Accounts: Identify income statement accounts that you believe are most likely to be misstated, and evaluate why the fluctuation (or lack thereof) is significant. Account 2018 Bal. 2017 Bal. Evaluation Current workpapers--audit planning + Pag 2-4-5 Oceanview Marine Company Preliminary Analytical Procedures: Identification of Accounts with Unexpected Fluctuations (continued) December 31, 2018 Divisional Income Statement Accounts: Identify three divisional income statement accounts that you believe are most likely to be misstated, and evaluate why the fluctuation (or lack thereof) is significant. Account & Division 2018 Bal. 2017 Bal. Evaluation