4. Below are the 8 invoices being paid by Local City on September 1, 2018. You are determining whether the invoices are properly accrued and the proper accrual amount. The client has provided an AP aging for you to compare the invoices to. Determine if the AP balance is reasonably stated in relation to the financial statements as a whole. If Not make an entry on the Schedule of Audit Differences listed below. The client has a policy to fully accrue all utility invoices and makes all other accruals in accordance with GAAP.
Description of Service/Product Vendor Amount Invoice Date PMT Date Progress payment, 90% complete, ABC Construction 768,000.00 services for June 2018 21-Aug-18 1-Sep-18 For engineering services Jan June Sparks Engineering 63,889.00 2018 2-Jul-18 1-Sep-18 1-Sep-18 Cs Office Solutions 238.00 Coppier services - on site May 31, 2018 Audit services-Progress billing for August 2018 Cleaning Services - June 2018 Progress payment, 46% complete, services for August 2018 Evn. Testing-sit test performed April 12,22,23, July 17, 18, & 22 23-Aug-18 1-Sep-18 1-Sep-18 CC Accounting 56,000.00 3-Sep-18 Janitorial Inc. 598.00 30-Jun-18 Local Contractor 245,500.00 12-Aug-18 1-Sep-18 323,545.00 1-Sep-18 ENV Environmental 12-Aug-18 Utiliti Services E Utilities 1,324.00 23-Jun-18 1-Sep-18 AP Aging 30 days >60 days Vendor Current ABC Construction 768,000.00 Sparks Engineering 63,889.00 CS office Solutions 238.00 CC Accounting Janitorial Inc. Local Contractor 245,500.00 323,545.00 ENV Environmental E Utilities 1,324.00 1,324.00 1,338,607.00 1,324.00 63,889.00 Schedule of Audit Differences Adjustment Material Required Mistatement Y/N Y/N Description Amount 1 2 3 4. 5 6 7 8 Nm n oNCO Description of Service/Product Vendor Amount Invoice Date PMT Date Progress payment, 90% complete, ABC Construction 768,000.00 services for June 2018 21-Aug-18 1-Sep-18 For engineering services Jan June Sparks Engineering 63,889.00 2018 2-Jul-18 1-Sep-18 1-Sep-18 Cs Office Solutions 238.00 Coppier services - on site May 31, 2018 Audit services-Progress billing for August 2018 Cleaning Services - June 2018 Progress payment, 46% complete, services for August 2018 Evn. Testing-sit test performed April 12,22,23, July 17, 18, & 22 23-Aug-18 1-Sep-18 1-Sep-18 CC Accounting 56,000.00 3-Sep-18 Janitorial Inc. 598.00 30-Jun-18 Local Contractor 245,500.00 12-Aug-18 1-Sep-18 323,545.00 1-Sep-18 ENV Environmental 12-Aug-18 Utiliti Services E Utilities 1,324.00 23-Jun-18 1-Sep-18 AP Aging 30 days >60 days Vendor Current ABC Construction 768,000.00 Sparks Engineering 63,889.00 CS office Solutions 238.00 CC Accounting Janitorial Inc. Local Contractor 245,500.00 323,545.00 ENV Environmental E Utilities 1,324.00 1,324.00 1,338,607.00 1,324.00 63,889.00 Schedule of Audit Differences Adjustment Material Required Mistatement Y/N Y/N Description Amount 1 2 3 4. 5 6 7 8 Nm n oNCO
