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ABC Client Preliminary Analytics - PBC Trial Balance December 31, 2019 Scope: Performance Materiality - $210,000 and 10% Variance % Variance Account Class Cash Investments Accounts Receivable Inventory Prepaids and Other Assets Fixed Assets Intangibles Current Portion of Debt Accounts Payable Accruals and Other Liabilities Long Term Debt Common Stock APIC AOCI Retained Earnings Revenues Cost of Goods Sold Other Income SG&A Depreciation Interest Expense Income Tax Expense 12/31/19 Balance 1,940,636 17,884,359 1,739,185 2,278,220 3,046,824 2,049,917 4,723,026 (873,950) (1,049,324) (1,805,961) (5,541,772) (1,000,000) (5,000,000) 681,275 (10,721,842) (38,567,154) 18,223,005 (1,324,646) 10,392.187 699, 100 372,887 1,854,028 12/31/18 Balance 2,872,029 14,037,877 2,370,540 3,496,421 2,619,477 1,727,017 1,942,348 (854,270) (1,233,888) (2,455,747) (6,415,722) (1,000,000) (5,000,000) (1,384,240) (4,564,183) (37,995,152) 17,911,437 (1,684,417) 11,685,148 678,100 460,337 2,786,888 MacBook Air Page of 2 Total Assets Total Libilities Total Equity Net Income Gross Profit Sele What evidence should be used/obtained in completing the following tasks? 1 Auditor would like to verify the amount of cash in the Fifth Third Bank operating account at December 31, 2019 2 Auditor would like to see that client is in fact building a new headquarters 3 Auditor would like to determine whether the inventory quantities are appropriate 4 Auditor would like to determine whether the assigned inventory costs per unit are appropriate 5 Auditor needs to determine the current portion of debt 6 Auditor needs to get an understanding of the inventory controls in place for receipt of goods 7 Auditor would like to understand why sales declined so much during the year 8 Auditor would like to gain a further understanding of how the client calculates their allowance for doubtful accounts 9 Auditor would like to determine whether the client correctly catagorized the AR Aging 10 Auditor would like to compare production volumes in order to gather expectations for auditing inventory ABONE ABC Client Preliminary Analytics - PBC Trial Balance December 31, 2019 Scope: Performance Materiality - $210,000 and 10% Variance % Variance Account Class Cash Investments Accounts Receivable Inventory Prepaids and Other Assets Fixed Assets Intangibles Current Portion of Debt Accounts Payable Accruals and Other Liabilities Long Term Debt Common Stock APIC AOCI Retained Earnings Revenues Cost of Goods Sold Other Income SG&A Depreciation Interest Expense Income Tax Expense 12/31/19 Balance 1,940,636 17,884,359 1,739,185 2,278,220 3,046,824 2,049,917 4,723,026 (873,950) (1,049,324) (1,805,961) (5,541,772) (1,000,000) (5,000,000) 681,275 (10,721,842) (38,567,154) 18,223,005 (1,324,646) 10,392.187 699, 100 372,887 1,854,028 12/31/18 Balance 2,872,029 14,037,877 2,370,540 3,496,421 2,619,477 1,727,017 1,942,348 (854,270) (1,233,888) (2,455,747) (6,415,722) (1,000,000) (5,000,000) (1,384,240) (4,564,183) (37,995,152) 17,911,437 (1,684,417) 11,685,148 678,100 460,337 2,786,888 MacBook Air Page of 2 Total Assets Total Libilities Total Equity Net Income Gross Profit Sele What evidence should be used/obtained in completing the following tasks? 1 Auditor would like to verify the amount of cash in the Fifth Third Bank operating account at December 31, 2019 2 Auditor would like to see that client is in fact building a new headquarters 3 Auditor would like to determine whether the inventory quantities are appropriate 4 Auditor would like to determine whether the assigned inventory costs per unit are appropriate 5 Auditor needs to determine the current portion of debt 6 Auditor needs to get an understanding of the inventory controls in place for receipt of goods 7 Auditor would like to understand why sales declined so much during the year 8 Auditor would like to gain a further understanding of how the client calculates their allowance for doubtful accounts 9 Auditor would like to determine whether the client correctly catagorized the AR Aging 10 Auditor would like to compare production volumes in order to gather expectations for auditing inventory ABONE