EXHIBITS E-mail to Audit Senior Copier Information Sheet Revenue Chart Copier Sales Years 1-4 58.8 Scroll down to complete all parts of this task. A CPA firm is auditing JNN Inc., a calendar year-end nonissuer, for the Year 4 audit. JNN is a small manufacturing company that manufactures and sells copiers. JNN began operations in Q1 Year 1. This is the fourth consecutive year the CPA firm has been engaged to audit JNN. The audit staff created the following to document the performance of audit data analytics related to sales. The primary objective of this audit data analytics is to provide information relevant to assessing and responding to the risks of material misstatement related to occurrence, completeness, and accuracy of revenue. As the audit senior for this engagement, you have the responsibility to review and revise this document, as needed. Use the additional information in the exhibits above to help determine whether any revisions are necessary. To revise the documentation, click on each segment of underlined text below and select the needed correction, if any, from the list provided. If the underlined text is already correct in the context of the documentation, select [Original text] from the list. If removal of the entire underlined text is the best revision to the list, select [Delete] from the list. close all exhibits Data Population The revenue data is derived from the client's general ledger and the units sold for each copier for the four years were obtained from the company's database, which were both accessed using audit software. Techniques, Tools, Graphics, and Tables Used We decided to use the following graphics: A graphic showing revenue over the past four years. A graphic showing trends in sales of each type of copier. Perform the ADA As expected, revenue for the first three quarters of the current year is less than the previous year's due to the labor strike. Choose an option below: [Original text] As expected, revenue for the first three quarters of the current year is less than the previous year's due to the new debt acquired. [Delete Text] As expected, revenue for the first three quarters of the current year is more than the previous year's due to the new debt acquired. o As expected, revenue for the first three quarters of the current year is the same as the previous year's due to new debt acquired. As expected, revenue for the first three quarters of the current year is less than the previous year's due to the labor strike. As expected, revenue for the first three quarters of the current year is more than the previous year's due to the labor strike. As expected, revenue for the first three quarters of the current year is the same as the previous year's due to labor strike. RESET In the final quarter, revenue approximates last year's levels. CANCEL ACCEPT completeness, and accuracy venue. There were some significant changes in sales mix in Year 4 that we did not originally anticipate based on our other risk assessment procedures. We increased the assessed risk related to the valuation of inventory due to the significant declines in Copier 100A, 200B, and 300A in Year 4. Choose an option below: O [Original text] We increased the assessed risk related to the valuation of fixed assets due to the significant declines in Copier 100A and 200A in Year 4. [Delete Text] We increased the assessed risk related to the valuation of inventory due to the significant declines in Copier 100A, 200B, and 300A in Year 4. We increased the assessed risk related to the valuation of inventory due to the significant declines in Copier 100A and 300A in Year 4. o We increased the performance materiality related to the valuation of inventory due to the significant declines in Copier 100A, 200B, and 300A in Year 4. RESET CANCEL ACCEPT Evaluation of the results The performance of the ADA confirmed our directional expectations and were consistent with the results of our other risk assessment procedures related to occurrence, completeness, and accuracy of revenue. As a result, we decided to increase the risk of material misstatement related to occurrence, completeness, and accuracy of revenue. Choose an option below: o [Original text] As a result, we did not modify the current risk of material misstatement related to occurrence, completeness, and accuracy of revenue. O [Delete Text] As a result, we decided to increase the risk of material misstatement related to occurrence, completeness, and accuracy of revenue. As a result, we decided to decrease the risk of material misstatement related to occurrence, completeness, and accuracy of revenue. o As a result, we decided to increase materiality related to occurrence, completeness, and accuracy of revenue. As a result, we decided to decrease materiality related to occurrence, completeness, and accuracy of revenue. RESET CANCEL ACCEPT From: controller@auditfirm.com Sent: July 15, Year 4, 5:55 p.m. To: auditsenior@auditfirm.com Subject: Updates E-mail to Audit Senior Audit Senior, I wanted to let you know that the labor strike in our California manufacturing building, which has caused significant declines in sales this year, is over as of today. The labor strike started back in February Year 4, so I am happy that we have come to an agreement. I also have exciting news! Copier 400X was featured on the front cover of Business Equipment Magazine in the June Year 4 issue. We released Copier 400X, our newest copier, in quarter 2 of Year 4. Copier 400X is our best seller and we are finding that customers are selecting this copier over some of our prior models because of the innovative features. Also, we obtained new debt as of July Year 4. I will provide you with those details in a subsequent e- mail. Regards, Controller 18,000,000 14,000,000 12,000,000 10,000,000 4,000,000 6,000,000 4,000,000 2,000,000 8888 02 Year 1 4,251,895 5,565,790 400,150 Revenue Chart Revenue by Quarter Year 2 3,958,125 3,478,928 2,750,258 2,809,250 HON KON ZON TON 3,725,218 2,342,050 2,355,340 Year 4 4,254,258 2,875,650 1,754,235 In Thousand In Thousands Volume of Copiers Sold by Type-Years 1 Through 4 9 O D Year 1 Copler 100A Year 2 Copler 1008 Year 2 Year 3 Year 3 Year 4 Year 4 20 15 In Thousands & In Thousands " 0 8 ti In Thousands b ww 8 Year 1 Year 1 Year 1 Copler 200A Year 2 Copler 2008 Copler 300A Year 3 Year 3 Year 3 Year 4 Year 4 Year 4 In Thousands In Thousands 20 A 9 D A A 20 9 LA Year 1 Year 1 Copler 3008 Year 2 Copler 400X Year 2 Year 3 Year 3 Year 4 Year 4 this with an increase in sample size. In addition, based on the reason for the declines in sales, we decided there was no need to modify the risk of material misstatement related to the completeness of warranty provisions. Choose an option below: [Original text] In addition, based on the reason for the decline in sales, we decided to increase the risk of material misstatement related to the completeness of warranty provisions. [Delete Text] In addition, based on the reason for the declines in sales, we decided to decrease the risk of material misstatement related to the completeness of warranty provisions. In addition, based on the reason for the declines in sales, we decided there was no need to modify the risk of material misstatement related to the completeness of warranty provisions. In addition, based on the reason for the declines in sales, we decided to increase audit risk. In addition, based on the reason for the declines in sales, we decided to decrease audit risk. RESET CANCEL ACCEPT Model Copier 100A Copier 1008 Copier 200A Copier 2008 Copier 300A Copier 3008 Copier 400X Copier Information Sheet Release Date January Year 1 June Year 2 February Year 1 February Year 1 February Year 2 February Year 2 March Year 4 Additional Information Discontinued production in Q2 Year 3. Last model sold in November Year 3. Objective of the Audit Data Analytics (ADA). In addition to other risk assessment procedures related to occurrence, completeness, and accuracy of sales, we performed audit data analytics to help us determine whether we needed to modify our current risk assessment. The primary objective of this test was to help identify whether there were any unusual (or unexpected) changes in revenue or sales mix from prior years that may affect our current risk assessment related to occurrence, completeness, and accuracy of sales and related response to that risk. Furthermore, we will determine whether significant declines in sales indicate potential issues with inventory valuation (as a result of obsolescence) or the completeness of warranty provisions (if the declines are due to quality issues). Choose an option below: o [Original text] Furthermore, we will determine whether significant declines in sales indicate potential issues with existence of fixed assets (as a result of obsolescence) or the completeness of warranty provisions (if the declines are due to quality issues). [Delete Text] Furthermore, we will determine whether significant declines in sales indicate potential issues with existence of inventory (as a result of obsolescence) or the completeness of warranty provisions (if the declines are due to quality issues). Furthermore, we will determine whether significant declines in sales indicate potential issues with fixed asset valuation (as a result of obsolescence) or the completeness of warranty provisions (if the declines are due to quality issues). Furthermore, we will determine whether significant declines in sales indicate potential issues with inventory valuation (as a result of obsolescence) or the completeness of warranty provisions (if the declines are due to quality issues). Furthermore, we will determine whether significant declines in sales indicate potential issues with inventory valuation (as a result of obsolescence) or the rights and obligations of warranty provisions (if the declines are due to quality issues). DEACT CANCEL ODERT