need proper entries with correct answer
Case Analysis Assume that you are the audit parther in charge of 2022 andit of Galanin Corporaticn, a private company. The audit report has not yet been prepored. For tach of the following indepedent situations, indicate the circumstance or condition and the appropriate vope of avdit report. 1. It was revealed to you that sales were mistakenly recorded as revenoe when the poods were ordered rather than when they were shipped. Assume that the amount in quention is bighly. material and Galaxia Corporation is unwilling to corroct the errot: 2. During your audit of Galaxia Corporation, you concloded that there is a possibility that inventory is so materially overstated. Management of Galexia Corpecation refuses to allow you to expand the scope of your audit safficiently to verify whether the tolance is actually mistated. 3. You relied upon another CPA firm to perfom part of the andit. Although you was the principal auditor, the other firm auditod a material portion of the financial statements of Galaxis Corporation. You are not willing to assume foll responsibility for overall audit work and refer to the other firm in audit report. 4. You were unable to confirm accounts receivable with the customens of Galxxia Corporation. However, because of detailed soles and cash receipts reconds, you were ahle to perform reliable and satisfactory altemative audit procedures. 5. You concluded there were fow items that materially affect the finmeial statements of Galixin Corporation and generally require disclosure in the footnotes. Galacia Corporation refases to properly diselose these items. 6. Gninxia Corporation has been in business for several years but over the last two years has struggled to stay afloat given the economic conditions. Based on the audit work, you concluded there is substantial doubt about Galaxia Corporation ability to continue in business by the end of its next fiscal year. 7. When auditing Galaxia Corporation's financial statements, you discoverod that one of your relatives works in a koy accounting position at Galaxia Corporation. 8. Galaxia Corporation has changed the salvage values of a number of its fixed assets. You believe that the salvage values are realistic. 9. Galuxia Corporation has changed its method of valuing depreciation from straight line to 9. Galaxia Corporation has changed its method of valuing the change has a material effect on the financial statements. You do not agree with the appropriateness of the change. 10. Galaxia Corporation has a fleet of several delivery trucks. In previous years, Galaxia roration had followed the policy of purchasing all equipment (including trucks). In the cot year, Galaxia Corporation decided to lease the trucks. The method of accounting for the its is therefore changed to lease capitalization
