Assignment #4 Accounting 403 Name You are on the audit team of Apollo Shoes Inc. for the year ending December 31, 2015 Your manager has asked you to complete the audit of Prepaid Expenses using the the following items: Audit Plan for Prepaid, Deferred and Accrued Expenses Prepaid Expenses Lead Schedule Some other things to note: The prior year balance for prepaid expenses was $375,000 The general ledger balance for prepaid expenses on 12/31/2015 is $3,617,416 The following invoices are related to prepaid insurance (assume you have vouched) Rock Solid Fidelity-Policy #ITK-394, fidelity bond on employees and directors, $250,000, dated January 1, 2015, 5-year term, premium $2,727,006, previous policy expired 12/31/2014 State Fire Insurance-Policy #624-3200, fire and extended coverage on plant building and contents, $500,000, $100,000 deductible, dated January 1, 2015, 4-year term, premium $1,414,415, previous policy expired 12/31/2014 Apollo Shoes, Inc. pays $750,000 for rent on 7/1 of each year for a one year period The expenses for insurance are at workpaper X-12 and for rent at workpaper X-10 Instructions: Print out this full package of information and complete the audit of Prepaid Expenses. Remember to document procedures you have performed on both the audit plan and workpapers, make sure to include workpaper indexes and signoffs. Assignment #4 Accounting 403 Name You are on the audit team of Apollo Shoes Inc. for the year ending December 31, 2015 Your manager has asked you to complete the audit of Prepaid Expenses using the the following items: Audit Plan for Prepaid, Deferred and Accrued Expenses Prepaid Expenses Lead Schedule Some other things to note: The prior year balance for prepaid expenses was $375,000 The general ledger balance for prepaid expenses on 12/31/2015 is $3,617,416 The following invoices are related to prepaid insurance (assume you have vouched) Rock Solid Fidelity-Policy #ITK-394, fidelity bond on employees and directors, $250,000, dated January 1, 2015, 5-year term, premium $2,727,006, previous policy expired 12/31/2014 State Fire Insurance-Policy #624-3200, fire and extended coverage on plant building and contents, $500,000, $100,000 deductible, dated January 1, 2015, 4-year term, premium $1,414,415, previous policy expired 12/31/2014 Apollo Shoes, Inc. pays $750,000 for rent on 7/1 of each year for a one year period The expenses for insurance are at workpaper X-12 and for rent at workpaper X-10 Instructions: Print out this full package of information and complete the audit of Prepaid Expenses. Remember to document procedures you have performed on both the audit plan and workpapers, make sure to include workpaper indexes and signoffs