Anderson, Olds, and Watershed (AOW) has completed the audit of Apollo Shoes, Inc. for liabilities and payroll. As a member of the audit team, you completed the audit tasks listed on the Liabilities Program and Payroll Program.

8-1 Questions. Based on the class meeting discussion of Apollos liabilities and payroll answer the questions listed in Chapter 8 on page 337 (see below) and how they relate to Apollo. The audit comments provided on the Liabilities and/or Payroll Programs are a good resource for answering these questions. (See instructions below!) Have liabilities and corresponding expenses or assets been recorded (completeness)? Have liabilities and corresponding expenses or assets been recorded in the proper period (cutoff)? Do liabilities reflect the actual needs and obligations of the company (occurrence and obligation)? Have liabilities and corresponding expenses or assets been recorded at their proper amount (valuation)? Have expenses been recorded in the proper account (classification)?

Instructions:

Option #1: You may write a summation paragraph and combine all five providing you identify the associated assertions throughout your discussion.

Option #2: You may list each question separately and provide a brief answer for each one.

Reference Source: Louwers, T. J., Bagley, P., Blay, A. D., Strawser, J. R., & Thibodeau, J. C. (2020). Auditing & Assurance Services, (8th ed.). McGraw Hill