For each of the check numbers in the table below, select from the option lists provided (1) whether any adjustment is required and (2) the dollar value of the required adjustment. Each selection may be used once, more than once, or not at all. If no adjustment is required, you must enter $0 for the amount.

.

Check Register

Vendor Check # Check AmountNature of the Expenses

Date

Water World Distributors, Inc. 1333 1/6/Yr 3 $3,500Water coolers in office and

warehouse delivered 12/31/Yr 2

Daniel Breen, Esquire 1334 1/6/Yr 3 $6,000Corporate legal services

for December Year 2

Telephone Services, Inc. 1335 1/8/Yr 3 $6,500December Year 2

telephone and computer services

Payroll processing -- 1336 1/10/Yr 3 $25,500 Bi-weekly payroll

Paychecks (12/25/Yr 2 - 1/7/Yr 3)

Pitt Ohio Trucking Company. 1337 1/10/Yr 3 $45,601 Trucking services

12/4/Yr 2 - 1/3/Yr 3, deliveries

made evenly through the period

Petty cash 1338 1/17/Yr 3 $2,002 Replenish petty cash box

Smith's Forklift Repairs 1339 1/22/Yr 3 $11,000 Received new fork lift

on 12/29/Yr 2, ordered on

12/18/Yr 2

Glenn's Glass DistributionCenter 1340 1/23/Yr 3 $12,230 Specialty goods

ordered 12/20/Yr 2, delivered

12/31/Yr 2

Payroll processing -- Paychecks 1341 1/24/Yr 3 $25,500 Bi-weekly payroll

(1/8/Yr 3 - 1/15/Yr 3)

Daniel Breen, Esquire. 1342 2/6/Yr 3 $6,800 Corporate legal

services for January Year 3

Email to Audit A..s@accounting.co

From:bob.feldman@accounting.com

Subject:Materiality

Hi Joe,

Keep in mind in conducting the audit procedures for the search for unrecorded liabilities, the materiality/scope for this area was assessed at $6,000. Adjustments are only recorded for items equal to or exceeding materiality.

Thank you,

Bob Feldman

Engagement Supervisor

You are Joe Adams, conducting audit procedures for the search for unrecorded liabilities. Related information is compiled in the exhibits.

For the items reflected in the check register, which are not recorded in the accounts payable subsidiary ledger at December 31, Year 2, determine whether each potential liability is recorded in the proper accounting period and also determine the amount that should be journalized, if any.

Check #. Adjustment Needed Yes or No. Amount

EX. 1333 No $0

1334

1335

1336

1336

1337

1338

1339

1340

1341

1342