4) I have provided you with the most recent financial information from Take-Two Interactive Software audited financial statements, refer to Exhibit | (you can find full financial statements via sec.gov). Taking into account the type of industry the company is part of what procedures would you perform over the following accounts (in your response ensure to incorporate the audit procedures and how they relate to the company- tech industry), ensure to account for the previous fraudulent activities at the company: Accounts receivables and allowance - Software development cost - Revenue - Stockholders equity Exhibit TAKE-TWO INTERACTIVE SOFTWARE, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except per share amounts) s Net revenue Cost of goods sold Gross profit Selling and marketing General and administrative Research and development Depreciation and amortization Business reorganization Total operating expenses Income from operations Interest and other net Gain (loss) on long-term investments, net Income before income taxes Provision for (benefit from) income taxes Net income Earnings per share: Basic eamings per share Diluted earings per share See accompanying Notes Fiscal Year Ended March 31, 2021 2020 2019 3,372,773 $ 3,088,970 5 2,668,394 1,535,085 1,542,450 1,523,644 1,837,687 1,546,520 1,144,750 444,985 458,424 391,400 390,683 318,235 281,234 317,311 296,398 230,170 55,596 48,113 40,232 (272) 83 (4,958) 1,208,303 1,121,253 938,078 629,384 425,267 206,672 8,796 38,505 26,113 39,636 (5,333) 677,816 458,439 232,785 88,930 53,980 (101,052) 588,8863 404,459 3 333,837 5 $ S 5.14 $ 5.09 $ 3.58 $ 3.54 $ 2.95 2.90 Exhibit TAKE-TWO INTERACTIVE SOFTWARE, INC. CONSOLIDATED BALANCE SHEETS (in thousands, except per share amounts) March 31, 2021 2020 $ 1,422,884 $ 1,308,692 538,822 1,357,664 644,003 546,604 552,762 17,742 43,443 15,524 320,646 4,220,515 149,364 164,763 490,892 535,306 121,591 90,206 98,541 157,040 6,028,218 $ 592,555 19.108 40,316 19,598 273,503 3,493,351 131.888 154,284 401,778 386.494 51,260 116,676 89,124 123,977 4.948.832 $ ASSETS Current assets: Cash and cash equivalents Short-term investments Restricted cash and cash equivalents Accounts receivable, net of allowances of $350 and $443 at March 31, 2021 and 2020, respectively Inventory Software development costs and licenses Deferred cost of goods sold Prepaid expenses and other Total current assets Fixed assets, net Right-of-use assets Software development costs and licenses, net of current portion Goodwill Other intangibles, net Deferred tax assets Long-term restricted cash and cash equivalents Other assets Total assets LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable Accrued expenses and other current liabilities Deferred revenue Lease liabilities Total current liabilities Non-current deferred revenue Non-current lease liabilities Non-current software development royalties Other long-term liabilities Total liabilities Commitments and contingencies Stockholders' equity: Preferred stock. $0.01 par value. 5.000 shares authorized: no shares issued and outstanding at March 31, 2021 and 2020 Common stock. $0.01 par value, 200,000 shares authorized; 137,584 and 135,927 shares issued and 115,163 and 113,506 outstanding at March 31, 2021 and 2020, respectively Additional paid-in capital Treasury stock, at cost; 22,421 common shares at March 31, 2021 and 2020, respectively Retained earnings Accumulated other comprehensive loss Total stockholders' equity Total liabilities and stockholders' equity Ses accompanying Notes. $ 71,001 $ 1,204,090 928,029 31,595 2,234,715 37,302 159,671 110,127 154,511 2,696,326 65,684 1,169,884 777,784 25,187 2,038,539 28,339 152,059 104,417 86,234 2.409.588 1,376 2,288,781 (820,572) 1,870,971 (8,664) 3,331,892 $ 6,028,218 S 1,359 2,134,748 (820,572) 1,282,085 (58,376) 2,539,244 4,948.832 4) I have provided you with the most recent financial information from Take-Two Interactive Software audited financial statements, refer to Exhibit | (you can find full financial statements via sec.gov). Taking into account the type of industry the company is part of what procedures would you perform over the following accounts (in your response ensure to incorporate the audit procedures and how they relate to the company- tech industry), ensure to account for the previous fraudulent activities at the company: Accounts receivables and allowance - Software development cost - Revenue - Stockholders equity Exhibit TAKE-TWO INTERACTIVE SOFTWARE, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except per share amounts) s Net revenue Cost of goods sold Gross profit Selling and marketing General and administrative Research and development Depreciation and amortization Business reorganization Total operating expenses Income from operations Interest and other net Gain (loss) on long-term investments, net Income before income taxes Provision for (benefit from) income taxes Net income Earnings per share: Basic eamings per share Diluted earings per share See accompanying Notes Fiscal Year Ended March 31, 2021 2020 2019 3,372,773 $ 3,088,970 5 2,668,394 1,535,085 1,542,450 1,523,644 1,837,687 1,546,520 1,144,750 444,985 458,424 391,400 390,683 318,235 281,234 317,311 296,398 230,170 55,596 48,113 40,232 (272) 83 (4,958) 1,208,303 1,121,253 938,078 629,384 425,267 206,672 8,796 38,505 26,113 39,636 (5,333) 677,816 458,439 232,785 88,930 53,980 (101,052) 588,8863 404,459 3 333,837 5 $ S 5.14 $ 5.09 $ 3.58 $ 3.54 $ 2.95 2.90 Exhibit TAKE-TWO INTERACTIVE SOFTWARE, INC. CONSOLIDATED BALANCE SHEETS (in thousands, except per share amounts) March 31, 2021 2020 $ 1,422,884 $ 1,308,692 538,822 1,357,664 644,003 546,604 552,762 17,742 43,443 15,524 320,646 4,220,515 149,364 164,763 490,892 535,306 121,591 90,206 98,541 157,040 6,028,218 $ 592,555 19.108 40,316 19,598 273,503 3,493,351 131.888 154,284 401,778 386.494 51,260 116,676 89,124 123,977 4.948.832 $ ASSETS Current assets: Cash and cash equivalents Short-term investments Restricted cash and cash equivalents Accounts receivable, net of allowances of $350 and $443 at March 31, 2021 and 2020, respectively Inventory Software development costs and licenses Deferred cost of goods sold Prepaid expenses and other Total current assets Fixed assets, net Right-of-use assets Software development costs and licenses, net of current portion Goodwill Other intangibles, net Deferred tax assets Long-term restricted cash and cash equivalents Other assets Total assets LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable Accrued expenses and other current liabilities Deferred revenue Lease liabilities Total current liabilities Non-current deferred revenue Non-current lease liabilities Non-current software development royalties Other long-term liabilities Total liabilities Commitments and contingencies Stockholders' equity: Preferred stock. $0.01 par value. 5.000 shares authorized: no shares issued and outstanding at March 31, 2021 and 2020 Common stock. $0.01 par value, 200,000 shares authorized; 137,584 and 135,927 shares issued and 115,163 and 113,506 outstanding at March 31, 2021 and 2020, respectively Additional paid-in capital Treasury stock, at cost; 22,421 common shares at March 31, 2021 and 2020, respectively Retained earnings Accumulated other comprehensive loss Total stockholders' equity Total liabilities and stockholders' equity Ses accompanying Notes. $ 71,001 $ 1,204,090 928,029 31,595 2,234,715 37,302 159,671 110,127 154,511 2,696,326 65,684 1,169,884 777,784 25,187 2,038,539 28,339 152,059 104,417 86,234 2.409.588 1,376 2,288,781 (820,572) 1,870,971 (8,664) 3,331,892 $ 6,028,218 S 1,359 2,134,748 (820,572) 1,282,085 (58,376) 2,539,244 4,948.832