Help please.. Confused need to find the errors on this assignment....

Instructions :

You are the audit senior on the Widgets audit for the year ended 12/31/16. Part of the job of a senior is to review the work of staff accountants.

You have assigned GKW to the audit of notes payable. The audit program you?ve given her includes all the substantive tests listed in the lecture notes.

She has completed her work on workpaper M-2. (This is the workpaper given to you as a pdf in Module 12 on Canvas.)

Your job is to review her work. You can assume if she says something agrees, it does. Think about the following as you do your review:

1. Did she do everything she was supposed todo?

2. Did she clearly indicate what she did on the work paper(using tickmarks, etc.) 3. Is there anything she clearly didn?t notice and should have?

GKW made more than 5 errors but you only need to find 5 of them.

NOTE: In the M-2 workpaper you?re given, the letter M at the bottom of the Per Book and LT portion columns refers to the debt leadsheet. X-1 next to Interest expense refers to an Expense supporting audit schedule. References to other workpapers do NOT need to be explained in the tickmark explanation area. These are not errors.

M"2 GKW Prepared 1/23/17 Reviewed Widgets,(Inc. Long(Term(Debt December(31,(2016 Long(term(debt(balances N/P/H/First/Commercial/// Interest/only/pymts/due/monthly 8%/annual;/due/in/full/1/1/18 Prior/Year// Collateral 12/31/15 Inventory ///////50,000 N/P/H/Lender's/Capital// Interest/only/pymts/due/monthly 6%/annual/rate;/due/in/full/6/30/18 2nd/Mtge Park/St /////100,000 N/P/H/Commercial/Bank// $5,000+interest/due/monthly 5%/annual/rate;/due/in/full/12/31/26 1st/Mtge Park/St /////720,000 J./Jerusha,/majority/stockholder/ Interest/only/pymts/due/monthly 0%;/due/in/full/12/31/20 Unsecured /////300,000 Date/of/ Current/ Date/of/ Principal/ Principal/ Per/book// portion// Loan Borrowings Payment Repayments 12/31/16 12/31/16 1/31/16 /////300,000 5/31/16 //////100,000 /////250,000 X //////////////H Accrued/ LT/portion/ Interest/ Interest/ 12/31/16 paid/to Payable /////250,000 12/25 /////////2,500 NR 2/28/16 ///////50,000 /////200,000 C //////////////H /////200,000 ////////60,000 /////660,000 C //////////////H /////660,000 12/5 /////////2,750 R 5/31/16 //////100,000 /////200,000 C //////////////H /////200,000 //////////////H //////260,000 //1,310,000 //1,310,000 /////////5,250 M M Various //1,170,000 /////350,000 F F F M //////////////H F M F 12/31 //////////////H F Tickmarks: Agreed/to/prior/year/workpapers Interest/Expense /////281,333 X - 1 F - Foots/correctly Average/loan/balance //1,240,000 //Agreed/to/board/of/directors'/authorization/and/bank/statement //Agreed/interest/rate,/terms,/and/collateral/to/copy/ofote/and/loan/agreement C(H/Confirmed/without/exception X("(Per/confirmation,/Widgets/violated/a/provision/of/the/loan/by/paying/a/dividend/during/the/year.//The/bank/called/for/immediate/payment/in/full/on/12/26/16. R/H/Recalculated/without/exception /H/Agreed/to/cancelled/checks/as/to/date/and/amount. Conclusion:((Long"term(debt,(accrued(interest(payable(and(interest(expenses(are(fairly(presented(at(12/31/16.((No(adjustments(necessary. F