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Ajay Singh (audit manager), Janie McKenzie (audit senior), and Jamal Smith (audit staff) are discussing the audit of revenues for Alvarez Enterprises. They are finalizing
Ajay Singh (audit manager), Janie McKenzie (audit senior), and Jamal Smith (audit staff) are discussing the audit of revenues for Alvarez Enterprises. They are finalizing their plans for substantive tests. They plan to send positive confirmations at two months prior to yearend, and they will use a service that allows for electronic submission of confirmations by customers. The book value of gross accounts receivable is $62,622,804. After discussion, the audit team sets tolerable misstatement at $3,000,000 and decide on a sample size of a 100 accounts to confirm The audit team selects a sample with a total book value of $4,550,000 and perform the confirmation procedures. You may assume that except for the instances noted below, you received confirmations from customers that showed no exceptions. Determine the amount of misstatement for each customer listed below. If the situation is deemed not to result in a misstatement, then enter '0' F. No response was received from Customer No. 10141. Goods in the amount of $344,232 were shipped on November 1, 2022. Additional goods in the amount of $131,824 were shipped on December 12, 2022. The receivable balance was 5476,056 at December 31, 2022. A review of the cash receipts journal showed that a check for $344,232 was deposited on January 24, 2023. Another check for $131,824 was received on February 1, 2023
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