An auditor is auditing the financial statements of a privately owned local hotel. The hotel has 200 guest rooms and in the last year, it generated $12.8 million in revenues. The auditor assessed the system of internal controls as effective and therefore decided to perform an ADA. The auditor has decided to perform a substantive analytical audit data analytic using the average nightly and vacancy rates to develop an expected revenue amount for the year and by month. This will be compared with the actual revenues. Required 1. What assertions will be addressed by this procedure? Briefly explain each. (hint; there are two assertions) 2. How will the auditor determine what is an acceptable difference? (hint; the answer is only a few words) 3. Assume the auditor conducted the test and produced the results in the chart above. The auditor determined that an acceptable difference was $300,000. Identify the exception and discuss how the auditor should deal with this notable item. (hint: you can answer in a sentence or two) An auditor is auditing the financial statements of a privately owned local hotel. The hotel has 200 guest rooms and in the last year, it generated $12.8 million in revenues. The auditor assessed the system of internal controls as effective and therefore decided to perform an ADA. The auditor has decided to perform a substantive analytical audit data analytic using the average nightly and vacancy rates to develop an expected revenue amount for the year and by month. This will be compared with the actual revenues. Required 1. What assertions will be addressed by this procedure? Briefly explain each. (hint; there are two assertions) 2. How will the auditor determine what is an acceptable difference? (hint; the answer is only a few words) 3. Assume the auditor conducted the test and produced the results in the chart above. The auditor determined that an acceptable difference was $300,000. Identify the exception and discuss how the auditor should deal with this notable item. (hint: you can answer in a sentence or two)