Homework: CHAPTER 6-AUDIT EVIDENCE Score: 0 of 20 pts 1 of 1 (1 complete) X P6-33 (similar to) You are auditing payroll for the Sandy Lane Technologies company for the year ended October 31, 2019. Included next are amounts from the client's trial balance, along with comparative audited into Click the icon to view the amounts from the trial balance.) (Click the icon to view the additional information) Read the requirements (Note 1: When computing the expected value of factory hourly payroll, you must take into consideration both the 2% wage increase and the 6% increase in the number of units produced and sold. No expected value for sales commissions on 1031/2019.) Requirement a. Requirement b. 1/2) - (1/2) (2) Expected Value 10/31/2019 Difference as a Percentage Executive salaries Factory hourly payroll (see Note 1) Factory supervisors' salaries Office salaries Preliminary Balance 10/31/2019 609,312 11,697 055 760,800 2,084,001 3,090,829 Sales commissions (see Note 2) Enter any number in the edits and then cher next are amounts from the client's trial balance, along with comparative audited information for the pri * wage increase and 6 ncrease in the number of units produced and sold. Note 2: Use the incre * Data Table Audited Preliminary Balance Balance 10/31/2018 10/31/2019 Sales 56,038,100 5 61,641,910 Executive salaries 551,291 609,312 Factory hourly payroll 10,603,817 11,697,055 Factory supervisors' salaries 809,654 760,800 Office salaries 2,503,982 2,084,001 Sales commissions 2,798,321 3,090,829 "Sales have increased 10% over pribr year. 4% percent of that is due to an increase in the average selling price. The remaining 6% is attributed to an increase in the number of units sold. Print Done are amounts from the client's trial balance, along with comparative audited information for the * More Info You have obtained the following information to help you perform preliminary analytical procedures for the payroll account balances 1. There has been a significant increase in the demand for Sandy Lane's products. The increase in sales was due to both an increase in the average selling price of 4 percent and an increase in units sold that resulted from the increased demand and an increased marketing effort. 2. Even though salles volume increased, there was no addition of executives, factory supervisors, or office personnel 3. All employees including executives, but excluding commission salespeople, received a 2 percent salary increase starting November 1, 2018. Commission salespeople receive their increased compensation through the increase in sales. 4. The increased number of factory hourly employees was accomplished by recalling employees that had been laid off. They receive the same wage rate as existing employees. Sandy Lane does not permit overtime. 5. Commission salespeople receive a 9 percent commission on all sales on which a commission is given. Approximately 80 percent of sales earn sales commission. The other 20 percent are call-ins," for which no commission is given Commissions are paid in the month following the month they are earned. Print Done Homework: CHAPTER 6-AUDIT EVIDENCE Score: 0 of 20 pts 1 of 1 (1 complete) X P6-33 (similar to) You are auditing payroll for the Sandy Lane Technologies company for the year ended October 31, 2019. Included next are amounts from the client's trial balance, along with comparative audited into Click the icon to view the amounts from the trial balance.) (Click the icon to view the additional information) Read the requirements (Note 1: When computing the expected value of factory hourly payroll, you must take into consideration both the 2% wage increase and the 6% increase in the number of units produced and sold. No expected value for sales commissions on 1031/2019.) Requirement a. Requirement b. 1/2) - (1/2) (2) Expected Value 10/31/2019 Difference as a Percentage Executive salaries Factory hourly payroll (see Note 1) Factory supervisors' salaries Office salaries Preliminary Balance 10/31/2019 609,312 11,697 055 760,800 2,084,001 3,090,829 Sales commissions (see Note 2) Enter any number in the edits and then cher next are amounts from the client's trial balance, along with comparative audited information for the pri * wage increase and 6 ncrease in the number of units produced and sold. Note 2: Use the incre * Data Table Audited Preliminary Balance Balance 10/31/2018 10/31/2019 Sales 56,038,100 5 61,641,910 Executive salaries 551,291 609,312 Factory hourly payroll 10,603,817 11,697,055 Factory supervisors' salaries 809,654 760,800 Office salaries 2,503,982 2,084,001 Sales commissions 2,798,321 3,090,829 "Sales have increased 10% over pribr year. 4% percent of that is due to an increase in the average selling price. The remaining 6% is attributed to an increase in the number of units sold. Print Done are amounts from the client's trial balance, along with comparative audited information for the * More Info You have obtained the following information to help you perform preliminary analytical procedures for the payroll account balances 1. There has been a significant increase in the demand for Sandy Lane's products. The increase in sales was due to both an increase in the average selling price of 4 percent and an increase in units sold that resulted from the increased demand and an increased marketing effort. 2. Even though salles volume increased, there was no addition of executives, factory supervisors, or office personnel 3. All employees including executives, but excluding commission salespeople, received a 2 percent salary increase starting November 1, 2018. Commission salespeople receive their increased compensation through the increase in sales. 4. The increased number of factory hourly employees was accomplished by recalling employees that had been laid off. They receive the same wage rate as existing employees. Sandy Lane does not permit overtime. 5. Commission salespeople receive a 9 percent commission on all sales on which a commission is given. Approximately 80 percent of sales earn sales commission. The other 20 percent are call-ins," for which no commission is given Commissions are paid in the month following the month they are earned. Print Done