Hayens End

Dec 31, 2019Dec 31, 2018

Cash193405194581

Restricted Cash19482356

Account Receivable3454949860

Inventories, net321905332297

Prepaid Expenses5657426659

Total current asset608381606753

Property and Equipment149894136501

Goodwill110000110000

Intangible Asset257000257000

Other Assets563613881

Total Asset11309111123135

Assumption 1The target acceptable audit risk for the Hayens' risk is %8

Assumption2At the beginning of the audit estimated risk of material misstatement for Hayens is 22%

Assumption3The tolerable misstatement for each account within the balance sheet has been set at

10 000 000 [or 10 000 in 1000's]

Question4. If there's a misstatement in prepaid expenses, is this account likely to be overstated or understated .

Question5. If there is misstatement in prepaid expenses, is this misstatement likely to be audit important or not audit important? Why?

Question6. Given the possible misstatement in prepaid expenses, what other balance sheet accounts are possibly misstated and would they be overstated or understated.

Question7 Given the possibly misstatement in prepaid expenses, what are the main income statement accounts that are possibly misstated and would they be understated or overstated

Question8 Considering only 2018 balance sheet evidence, what would be a reasonable auditor's expectation for the 2019cash balance? Why is a reasonable expectation?

Question 9. Given the trend evidence concerning cash explain how each variables of ARM needs to be revised ( increased or decreased) Why your response is so?