{ "key_pair_value_system": true, "answer_rating_count": "", "question_feedback_html": { "html_star": "", "html_star_feedback": "" }, "answer_average_rating_value": "", "answer_date_js": "2024-05-29T01:16:16-04:00", "answer_date": "2024-05-29 01:16:16", "is_docs_available": "", "is_excel_available": "", "is_pdf_available": "", "count_file_available": 0, "main_page": "student_question_view", "question_id": "1868822", "url": "\/study-help\/questions\/based-on-the-company-and-its-environment-including-its-internal-1868822", "question_creation_date_js": "2024-05-29T01:16:16-04:00", "question_creation_date": "May 29, 2024 01:16 AM", "meta_title": "[Solved] Based on the company and its environment, | SolutionInn", "meta_description": "Answer of - Based on the company and its environment, including its internal control, the auditors assessed the risk of material m | SolutionInn", "meta_keywords": "based,company,environment,internal,control,auditors,assessed,risk,material,misstatements,financial,statements", "question_title_h1": " Based on the company and its environment, including its internal control, the auditors assessed the risk of material misstatements to the financial statements, whether", "question_title": " Based on the company and its environment, including its internal control,", "question_title_for_js_snippet": "Based on the company and its environment, including its internal control, the auditors assessed the risk of material misstatements to the financial statements, whether due to error or fraud, and designed the nature, timing, and extent of further audit procedures to be performed As a result of conducting the above risk assessment procedures, the audit plan for year 2 includes the following changes from the audit plan for year 1 The company has a calendar year end and operates only on weekdays In conducting the audit procedures for the search for unrecorded liabilities, the materiality scope for this area was assessed by the auditors at $6,000 Adjustments are only recorded for items equal to, or exceeding materiality The last day of fieldwork is estimated to be February 1, year 3 For the items reflected in the following check register, which are not recorded in the accounts payable subsidiary ledger at December 31, year 2, determine if each potential liability is recorded in the proper accounting period and also determine the amount that should be journalized, if any If no action is required, you must enter $0 For each of the check numbers in the table below, select if any action or adjustment is required If no action is required, put $0 in the amount column if an adjustment is needed select the dollar amount Each selection may be used once, more than once, or not at all Check Register Vendor Check Check date Water World Distributors, Inc 1333 1 6 year 3 Daniel Breen, Esquire Telephone Services, Inc 1334 1335 Payroll processing Paychecks 1336 Pitt Ohio Trucking Company 1337 1 6 year 3 1 8 year 3 1 10 year 3 1 10 year 3 Amount $ 3,500 $ 6,000 $ 6,500 $25,500 $45,601 Petty cash 1338 Smith's Forklift Repairs 1339 1 17 year 3 $ 2,002 1 22 year 3 $11,000 Glenn's Glass Distribution Center 1340 1 23 year 3 $12,230 Payroll processing Paychecks Daniel Breen, Esquire 1341 1342 1 24 year 3 2 6 year 3 $25,500 $ 6,800 Nature of the expenses Water coolers in office and warehouse delivered 12 31 year 2 Corporate legal services for December, year 2 December, year 2, telephone and computer services Biweekly payroll (12 25 year 2 1 7 year 3) Trucking services 12 4 year 2 1 3 year 3, deliveries made evenly throughout the period Replenish petty cash box Received new forklift on 12 29 year 2, ordered on 12 18 year 2 Specialty goods ordered 12 20 year 2, delivered 12 31 year 2 Biweekly payroll (1 8 year 3 1 15 year 3) Corporate legal services for January, year 3 Check Adjustment Needed Amount 1333 1334 1335 1336 1337 1338 1339 1340 1341 1342", "question_description": "\"image", "transcribed_text": "Based on the company and its environment, including its internal control, the auditors assessed the risk of material misstatements to the financial statements, whether due to error or fraud, and designed the nature, timing, and extent of further audit procedures to be performed. As a result of conducting the above risk assessment procedures, the audit plan for year 2 includes the following changes from the audit plan for year 1. The company has a calendar year-end and operates only on weekdays. In conducting the audit procedures for the search for unrecorded liabilities, the materiality\/scope for this area was assessed by the auditors at $6,000. Adjustments are only recorded for items equal to, or exceeding materiality. The last day of fieldwork is estimated to be February 1, year 3. For the items reflected in the following check register, which are not recorded in the accounts payable subsidiary ledger at December 31, year 2, determine if each potential liability is recorded in the proper accounting period and also determine the amount that should be journalized, if any. If no action is required, you must enter $0. For each of the check numbers in the table below, select if any action or adjustment is required. If no action is required, put $0 in the amount column; if an adjustment is needed select the dollar amount. Each selection may be used once, more than once, or not at all. Check Register Vendor Check # Check date Water World Distributors, Inc. 1333 1\/6\/year 3 Daniel Breen, Esquire Telephone Services, Inc. 1334 1335 Payroll processing-Paychecks 1336 Pitt Ohio Trucking Company 1337 1\/6\/year 3 1\/8\/year 3 1\/10\/year 3 1\/10\/year 3 Amount $ 3,500 $ 6,000 $ 6,500 $25,500 $45,601 Petty cash 1338 Smith's Forklift Repairs 1339 1\/17\/year 3 $ 2,002 1\/22\/year 3 $11,000 Glenn's Glass Distribution Center 1340 1\/23\/year 3 $12,230 Payroll processing-Paychecks Daniel Breen, Esquire 1341 1342 1\/24\/year 3 2\/6\/year 3 $25,500 $ 6,800 Nature of the expenses Water coolers in office and warehouse delivered 12\/31\/year 2 Corporate legal services for December, year 2 December, year 2, telephone and computer services Biweekly payroll (12\/25\/year 2-1\/7\/year 3) Trucking services 12\/4\/ year 2-1\/3\/year 3, deliveries made evenly throughout the period Replenish petty cash box Received new forklift on 12\/29\/year 2, ordered on 12\/18\/year 2 Specialty goods ordered 12\/20\/year 2, delivered 12\/31\/year 2 Biweekly payroll (1\/8\/year 3-1\/15\/year 3) Corporate legal services for January, year 3 Check # Adjustment Needed Amount 1333 1334 1335 1336 1337 1338 1339 1340 1341 1342", "related_book": { "title": "Financial Accounting", "isbn": "978-0132771801, 9780132771580, 132771802, 132771586, 978-0133052152", "edition": "2nd edition", "authors": "Robert Kemp, Jeffrey Waybright", "cover_image": "https:\/\/dsd5zvtm8ll6.cloudfront.net\/si.question.images\/book_images\/292.jpg", "uri": "\/textbooks\/financial-accounting-2nd-edition-292", "see_more_uri": "" }, "free_related_book": { "isbn": "145163482X", "uri": "\/textbooks\/part-wild-caught-between-the-worlds-of-wolves-and-dogs-1st-edition-978-1451634822-240984", "name": "Part Wild Caught Between The Worlds Of Wolves And Dogs", "edition": "1st Edition" }, "question_posted": "2024-05-29 01:16:16", "see_more_questions_link": "\/study-help\/questions\/business-banking-2021-September-12", "step_by_step_answer": "The Answer is in the image, click to view ...", "students_also_viewed": [ { "url": "\/a-portfolio-manager-owns-a-bond-worth-2000000-that-will", "description": "A portfolio manager owns a bond worth 2,000,000 that will mature in one year. 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