need help on all five PLEASE

Part I. AUDITING FINANCIAL STATEMENT IS RISK BASED EVIDENITAL REASONING [ 50 pts]

Examine and use the following table for all parts of exam where financial statement information is useful.

Assumptions are in blue text. During 2019 Duluth Trading merged with EarthWear to form DTE Inc. It is January 25, 2021 and you are part of the audit team examining the unaudited 2020 data. Assume any knowledge you acquired by studying EarthWear carries over to the merged company.

The consolidated total revenues for DTE Inc. is as follows:

2020 [unaudited]: $ 2,032,154

2019 $ 2,015,026

2018 $ 1,900,986.

Part I. AUDITING FINANCIAL STATEMENT IS RISK BASED EVIDENITAL REASONING [ 50 pts]

The manager of your audit team has identified two of DTEs asset accounts as requiring additional audit analysis: Cash and Accounts Receivable. The following questions relate to these two accounts.

1. List one accounting pronouncement and two auditing pronouncements that you should consider when auditing DTEs Cash and Accounts Receivable accounts:

2. What would be your dollar recommendation for Materiality and Tolerable Misstatement [TM] for these 2 accounts? Show any calculations you use and provide reasoning as to why your recommendations would be appropriate:

1. Cash

2. Accounts Receivable

3. For each account, list two examples of misstatement, one an unintentional and the other an intentional misstatement. For example, if you were examining sales, an unintentional misstatement might be a pricing miscalculation and intentional error might be creating fictional sale.

1. Cash

2. Accounts Receivable

4. For each account, state the complete Assertion that you believe is of most audit interest and explain WHY it is of most audit interest. For example, for sales, the Assertion might be: Completeness: The sales account balance includes all sales transactions for 2019:

a. Cash [assertion plus your reasoning]:

b. Trade Accounts Receivable [assertion plus your reasoning]:

5. During audit planning, the auditor will conduct IR Assessment. Given your knowledge of EarthWear, provide one example of an IR that may be audit important for DTE Inc for each of the following categories:

1. An industry related factor:

2. An factor related to the complexity of accounting for trade accounts receivable

Consolidated Balance Sheet - USD ($) DULUTH TRADING/EARTHWEAR 2018 - 2020 Dec 31, $ Change Dec 31, 2020 (2020 Percent Percent minus 2019 [unaudited) 20191 $ Change [2019 minus 20181 Dec 31, 2018 Percent 13% 3% 12% 2% 14% 3% 19% 2% 23% 19% $ 1,102 4,689 89,608 9,915 (18,372) 13,393 Current assets Cash Accounts receivable, net Inventories, net Prepaid exp and other Total current assets Net Property & equipment Goodwill Intangible assets, net Other assets Total assets 2% 2% $ 31,195 10,576 6,983 265 (647) 13,665 $ 245,405 54,549 421,905 36,574 588,381 149,894 110,000 257,000 5,636 1,869,344 31% 34% $ 244,303 49,860 332,297 26,659 606,753 136,501 110,000 257,000 13,881 1,777,254 $ 213,108 39,284 325,314 26,394 607,400 122,836 110,000 257,000 17,155 1,718,491 8% 8% 6% 6% 14% 35% 7% 6% 15% 1% 14% 0% 100% 1% (8,245) 92,090 (3,274) 58,763 100% 100% Consolidated Balance Sheet - USD ($) DULUTH TRADING/EARTHWEAR 2018 - 2020 Dec 31, $ Change Dec 31, 2020 (2020 Percent Percent minus 2019 [unaudited) 20191 $ Change [2019 minus 20181 Dec 31, 2018 Percent 13% 3% 12% 2% 14% 3% 19% 2% 23% 19% $ 1,102 4,689 89,608 9,915 (18,372) 13,393 Current assets Cash Accounts receivable, net Inventories, net Prepaid exp and other Total current assets Net Property & equipment Goodwill Intangible assets, net Other assets Total assets 2% 2% $ 31,195 10,576 6,983 265 (647) 13,665 $ 245,405 54,549 421,905 36,574 588,381 149,894 110,000 257,000 5,636 1,869,344 31% 34% $ 244,303 49,860 332,297 26,659 606,753 136,501 110,000 257,000 13,881 1,777,254 $ 213,108 39,284 325,314 26,394 607,400 122,836 110,000 257,000 17,155 1,718,491 8% 8% 6% 6% 14% 35% 7% 6% 15% 1% 14% 0% 100% 1% (8,245) 92,090 (3,274) 58,763 100% 100%