List all accounts from the Client List of Accounts involved in the Revenue Cycle and all accounts involved in the Expeditures Cycle WP 1-1 WP 1-2 Identify the primary one or two assertions and describe the risks assocated with those assertions for each account. See WP1-2 for further detailed instructions. For the selected accounts, describe one control activity per risk listed on WP 1-2 which the client can implement to reduce the risk of material misstatement in that account. See WP1-3 for further detailed instructions. WP 1-3 For the selected accounts, describe a recommended audit procedure that an auditor could perform to test the assertion(s) identified (in WP1-2) so as to detect material misstatements in that account. See WP1-4 for further detailed instructions. WP 1-4 Balance Sheet & Stockholders Equity Cash Petty Cash Accounts Receivable Allowance for Doubtful Accounts Notes Receivable Interest Receivable Supplies Inventory Prepaid Advertising Prepaid Rent Investments Land Land improvements Buildings Accumulated Deprecation - Buildings Equipment Accumulated Deprecation - Equipment Patents Goodwill Accounts Payable Other Current Liabilities 3 Notes Payable 4 Deferred Revenue 5 Salaries Payable 6 Interest Payable 7 Utilities Payable 8 Dividends Payable 9 Income Tax Payable 30 Sales Tax Payable 31 Warranty Liability 32 Lawsuit Liability 33 Common Stock 34 Preferred Stock 35 Additional Paid-In Capital 36 Retained Earnings 37 Treasury Stock 38 Dividends Income Statement Service Revenue Sales Revenue Sales Discounts Sales Returns Interest Revenue Dividend Revenue Equity Income Gain Advertising Expense Amortization Expense Bad Debt Expense Cost of Goods Sold Delivery Expense Depreciation Expense Entertainment Expense Income Tax Expense Insurance Expense Interest Expense Payroll Tax Expense Postage Expense Property Tax Expense Rent Expense Repair & Maintenance Expense Research & Development Expense Salaries Expense Shrinkage Expense Spoilage Expense Supplies Expense Utilities Expense Warranty Expense Loss WP1-1. Accounts of the Revenue and Expenditure Cycles (50 points) Prepared By: 1. List belot all the accounts from the Client List of Accounts involved in the Revenue Cycle. (the 2. List below all the accounts from the Client List of Accounts involved in the Expenditure Cycle. 3. Sign off on the WP (complete "Prepared By" on row 2 of workpaper) Revenue Cycle Accounts Expenditure Cycle Accounts 5 6 4. For esch of the following accounts, identify the primary one or two assertions and describe the risk associated with those sertions for each account NOTE: See columns CRE for how many assertions should be identified in this wignment for each account 5. Signalf on the WP complete "Prepared by on row 2 of workpper) Cycle Revenue Risk Account Sales Revenue Assertion Revenue Service Revenue 1 2 1 Revenue Revenue Revenue Revenue Sales Returns Sales Discounts Account Recevable Ree Revenue Havenue Revenue Revenue Expenditure Allowance or counts Bad Debten Warranty Sales Tax Payable Deferred Revenue Inventory 1 1 1 1 spenditure Expenditure Expenditure Expenditure Expenditure Expenditute Expenditure Repair & Maintenance Depene Rent Expense Cost of Goods Sold Equipment Accumulated Depreciation Accounts Payable Spoilage Expense 1 1 1 1 6. For each of the following accounts, identify one control activity per risk listed that the client can implement to reduce the risk of material misstatement in the account. Each control activity should be described in enough detail that the reader can understand what is being performed and how the risk of misstatement is being reduced as a result of For example, if the control activity is some type of review, the specific items being checked and what is being reviewed for, by who and frequency should be described. NOTE: The control activities of review" or "analysis/analytical procedures" cannot be the only control activity listed for any one account 7. Sign off on the WP (complete "Prepared By" on row 2 of workpaper) Cycle Account Sales Revenue Risk (copy from WP1-2) Revenue Control Activity to reduceri Revenue Revenue Revenue Sales Returns Cash Accounts Receivable Revenue Revenue Expenditure Allowance for Doubtful Accounts Warranty Liability Inventory 1 2 1 1 1 2 1 1 1 2 1 1 1 1 2 1 1 1 2 1 1 1 2 1 1 1 Expenditure Expenditure Expenditure Expenditure Expenditure Expenditure Repair & Maintenance Expense Spoilage Expense Cost of Goods Sold Equipment Accumulated Depreciation Accounts Payable 1 1 1 1 WP1-4. Audit Procedures for select Accounts in the Revenue and Expenditure Cycles (50 points) Prepared By: 8. For each of the following accounts, describe a recommended audit procedure that an auditor could perform to test the assertion(s) identified in WP1-2) and detect material misstatements in the account The audit procedure should be described in enough detail that the reader can understand what is being performed and how a mistatement could be identified as a result of the procedure. 9. Sign off on the WP (complete "Prepared by on row 2 of workpaper) Cycle Account Assertion (copy from WP1-2) Recommended Audit Procedure Revenue Sales Revenue 1 2 2 Revenue Cash 1 1 Revenue Accounts Receivable 1 2 Revenue Allowance for Doubtful Accounts 1 Expenditure Inventory 1 1 2 1 1 Expenditure Expenditure Expenditure Expenditure Expenditure Repair & Maintenance Expense Cost of Goods Sold Equipment Accumulated Depreciation Accounts Payable 1 1 1 1 1 1 List all accounts from the Client List of Accounts involved in the Revenue Cycle and all accounts involved in the Expeditures Cycle WP 1-1 WP 1-2 Identify the primary one or two assertions and describe the risks assocated with those assertions for each account. See WP1-2 for further detailed instructions. For the selected accounts, describe one control activity per risk listed on WP 1-2 which the client can implement to reduce the risk of material misstatement in that account. See WP1-3 for further detailed instructions. WP 1-3 For the selected accounts, describe a recommended audit procedure that an auditor could perform to test the assertion(s) identified (in WP1-2) so as to detect material misstatements in that account. See WP1-4 for further detailed instructions. WP 1-4 Balance Sheet & Stockholders Equity Cash Petty Cash Accounts Receivable Allowance for Doubtful Accounts Notes Receivable Interest Receivable Supplies Inventory Prepaid Advertising Prepaid Rent Investments Land Land improvements Buildings Accumulated Deprecation - Buildings Equipment Accumulated Deprecation - Equipment Patents Goodwill Accounts Payable Other Current Liabilities 3 Notes Payable 4 Deferred Revenue 5 Salaries Payable 6 Interest Payable 7 Utilities Payable 8 Dividends Payable 9 Income Tax Payable 30 Sales Tax Payable 31 Warranty Liability 32 Lawsuit Liability 33 Common Stock 34 Preferred Stock 35 Additional Paid-In Capital 36 Retained Earnings 37 Treasury Stock 38 Dividends Income Statement Service Revenue Sales Revenue Sales Discounts Sales Returns Interest Revenue Dividend Revenue Equity Income Gain Advertising Expense Amortization Expense Bad Debt Expense Cost of Goods Sold Delivery Expense Depreciation Expense Entertainment Expense Income Tax Expense Insurance Expense Interest Expense Payroll Tax Expense Postage Expense Property Tax Expense Rent Expense Repair & Maintenance Expense Research & Development Expense Salaries Expense Shrinkage Expense Spoilage Expense Supplies Expense Utilities Expense Warranty Expense Loss WP1-1. Accounts of the Revenue and Expenditure Cycles (50 points) Prepared By: 1. List belot all the accounts from the Client List of Accounts involved in the Revenue Cycle. (the 2. List below all the accounts from the Client List of Accounts involved in the Expenditure Cycle. 3. Sign off on the WP (complete "Prepared By" on row 2 of workpaper) Revenue Cycle Accounts Expenditure Cycle Accounts 5 6 4. For esch of the following accounts, identify the primary one or two assertions and describe the risk associated with those sertions for each account NOTE: See columns CRE for how many assertions should be identified in this wignment for each account 5. Signalf on the WP complete "Prepared by on row 2 of workpper) Cycle Revenue Risk Account Sales Revenue Assertion Revenue Service Revenue 1 2 1 Revenue Revenue Revenue Revenue Sales Returns Sales Discounts Account Recevable Ree Revenue Havenue Revenue Revenue Expenditure Allowance or counts Bad Debten Warranty Sales Tax Payable Deferred Revenue Inventory 1 1 1 1 spenditure Expenditure Expenditure Expenditure Expenditure Expenditute Expenditure Repair & Maintenance Depene Rent Expense Cost of Goods Sold Equipment Accumulated Depreciation Accounts Payable Spoilage Expense 1 1 1 1 6. For each of the following accounts, identify one control activity per risk listed that the client can implement to reduce the risk of material misstatement in the account. Each control activity should be described in enough detail that the reader can understand what is being performed and how the risk of misstatement is being reduced as a result of For example, if the control activity is some type of review, the specific items being checked and what is being reviewed for, by who and frequency should be described. NOTE: The control activities of review" or "analysis/analytical procedures" cannot be the only control activity listed for any one account 7. Sign off on the WP (complete "Prepared By" on row 2 of workpaper) Cycle Account Sales Revenue Risk (copy from WP1-2) Revenue Control Activity to reduceri Revenue Revenue Revenue Sales Returns Cash Accounts Receivable Revenue Revenue Expenditure Allowance for Doubtful Accounts Warranty Liability Inventory 1 2 1 1 1 2 1 1 1 2 1 1 1 1 2 1 1 1 2 1 1 1 2 1 1 1 Expenditure Expenditure Expenditure Expenditure Expenditure Expenditure Repair & Maintenance Expense Spoilage Expense Cost of Goods Sold Equipment Accumulated Depreciation Accounts Payable 1 1 1 1 WP1-4. Audit Procedures for select Accounts in the Revenue and Expenditure Cycles (50 points) Prepared By: 8. For each of the following accounts, describe a recommended audit procedure that an auditor could perform to test the assertion(s) identified in WP1-2) and detect material misstatements in the account The audit procedure should be described in enough detail that the reader can understand what is being performed and how a mistatement could be identified as a result of the procedure. 9. Sign off on the WP (complete "Prepared by on row 2 of workpaper) Cycle Account Assertion (copy from WP1-2) Recommended Audit Procedure Revenue Sales Revenue 1 2 2 Revenue Cash 1 1 Revenue Accounts Receivable 1 2 Revenue Allowance for Doubtful Accounts 1 Expenditure Inventory 1 1 2 1 1 Expenditure Expenditure Expenditure Expenditure Expenditure Repair & Maintenance Expense Cost of Goods Sold Equipment Accumulated Depreciation Accounts Payable 1 1 1 1 1 1