Please give me the answer to this audit assignment and please only do it based on data of the following: Brandon, Manitoba; Edmonton, Alberta; Fredericton, New Brunswick; Halifax, Nova Scotia; Jasper, Alberta; Montreal, Quebec; Regina, Saskatchewan; Toronto, Ontario. I attached the question as pictures below:
This assignment is expected to take you roughly 5 hours after you receive your confirmation letters. Please allow 48 hours for me to respond to your e-mail request. This is a simulated positive circulation of Student Name: Accounts Receivable. Your work will be Identification (3 marks) evaluated as follows: None almost All of none some all Was each page identified with a unique number? 0 12 1 Did the preparer initial each page? 0 12 1 Was there a date when the work was done? 0 12 1 13 Cross referencing (3 marks) None Some Most All Were non-standard symbols used and explained? 0 2 1 Were symbols used appropriately? Were numbers cross referenced properly? 3 (max) Procedures (4 marks) None Some Most All Were all steps performed and documented? 0 12 1 1/2 Were differences treated properly? 12 1 1/2 (correctly identified as real or timing) Were adjusting journal entries reasonable? 0 12 1 1/2 Was the population total recalculated accurately? Was the ADA re- /4 (max) Lead Sheet (2 marks) Some Most Was a conclusion given? Was the overall conclusion appropriate? 12 Overall (3 marks) Above or care Accept average Profess Neatness/ Presentation/Spelling 0 42 1 1 5 2 Missin last Accept average Profess steps minute able e ional Completeness 0 12 1 1/2 2 13 (max) Total /15 61.8% 21:40 O Ei 99+ ENG 10/12/2020December 31, 2020 Edmonton, Alberta 290 Adelaide Street East, Suite 209 Toronto, Ontario MST 219 Dear Sir or Madame: Our auditors, Rowlands, Marcellin and Kudel, are making their regular audit of our financial statements. Part of this audit includes direct verification of customer balances. PLEASE EXAMINE THE DATA BELOW CAREFULLY AND EITHER CONFIRM ITS ACCURACY OR REPORT ANY DIFFERENCES DIRECTLY TO OUR AUDITORS USING THE ENCLOSED REPLY ENVELOPE, ATTN: Minh Tuan Le. This is not a request for payment. Please do not send your remittance to our auditors. Your prompt attention to this confirmation request will be appreciated. Alexandria Morris Alexandria Morris, Chief Financial Officer The balance due Bessemer Corporation Limited, is $ 825,393.03. This balance is correct except as noted below: Missing discount of $ 37,087.96. Please correct. Date: Jan 6, 2021 By: Real Perez Title: ControllerDecember 31, 2020 Fredericton, New Brunswick 290 Adelaide Street East, Suite 209 Toronto, Ontario M5T 219 Dear Sir or Madame: Our auditors, Rowlands, Marcellin and Kudel, are making their regular audit of our financial statements. Part of this audit includes direct verification of customer balances PLEASE EXAMINE THE DATA BELOW CAREFULLY AND EITHER CONFIRM ITS ACCURACY OR REPORT ANY DIFFERENCES DIRECTLY TO OUR AUDITORS USING THE ENCLOSED REPLY ENVELOPE, ATTN: Minh Tuan Le. This is not a request for payment. Please do not send your remittance to our auditors. Your prompt attention to this confirmation request will be appreciated. Alexandria Morris Alexandria Morris, Chief Financial Officer The balance due Bessemer Corporation Limited, is $ 41,973.95. This balance is correct except as noted below: Date: By: Title:December 31, 2020 Halifax, Nova Scotia 290 Adelaide Street East, Suite 209 Toronto, Ontario MST 2T9 Dear Sir or Madame: Our auditors, Rowlands, Marcellin and Kudel, are making their regular audit of our financial statements. Part of this audit includes direct verification of customer balances PLEASE EXAMINE THE DATA BELOW CAREFULLY AND EITHER CONFIRM ITS ACCURACY OR REPORT ANY DIFFERENCES DIRECTLY TO OUR AUDITORS USING THE ENCLOSED REPLY ENVELOPE, ATTN: Minh Tuan Le. This is not a request for payment. Please do not send your remittance to our auditors. Your prompt attention to this confirmation request will be appreciated. Alexandria Morris Alexandria Morris, Chief Financial Officer The balance due Bessemer Corporation Limited, is $ 245,120.92. This balance is correct except as noted below: Bankruptcy proceedings have begun. We can offer & 29,700.00 as a one time payment. Date: Jan 5, 2021 By: Janet Brooks CPA per Gowin, Raza Title: Trustee in BankruptcyDecember 31, 2020 Jasper, Alberta 290 Adelaide Street East, Suite 209 Toronto, Ontario MST 2TS Dear Sir or Madame: Our auditors, Rowlands, Marcellin and Kudel, are making their regular audit of our financial statements. Part of this audit includes direct verification of customer balances. PLEASE EXAMINE THE DATA BELOW CAREFULLY AND EITHER CONFIRM ITS ACCURACY OR REPORT ANY DIFFERENCES DIRECTLY TO OUR AUDITORS USING THE ENCLOSED REPLY ENVELOPE, ATTN: Minh Tuan Le. This is not a request for payment. Please do not send your remittance to our auditors. Your prompt attention to this confirmation request will be appreciated. Alexandria Morris Alexandria Morris, Chief Financial Officer The balance due Bessemer Corporation Limited, is $ 11,445.96. This balance is correct except as noted below: Date: By: Title:December 31, 2020 Montreal, Quebec 290 Adelaide Street East, Suite 209 Toronto, Ontario MST 219 Dear Sir or Madame: Our auditors, Rowlands, Marcellin and Kudel, are making their regular audit of our financial statements. Part of this audit includes direct verification of customer balances PLEASE EXAMINE THE DATA BELOW CAREFULLY AND EITHER CONFIRM ITS ACCURACY OR REPORT ANY DIFFERENCES DIRECTLY TO OUR AUDITORS USING THE ENCLOSED REPLY ENVELOPE, ATTN: Minh Tuan Le. This is not a request for payment. Please do not send your remittance to our auditors. Your prompt attention to this confirmation request will be appreciated. Alexandria Morris Alexandria Morris, Chief Financial Officer The balance due Bessemer Corporation Limited, is $ 1,783,198.10. This balance is correct except as noted below: Goods not received, invoice #207187, for $ 89,840.61 Insurance claim? Date: Jan 4, 2021 By: Jacob Feldstein Title: ComptrollerDecember 31, 2020 Regina. Saskatchewan 290 Adelaide Street East, Suite 209 Toronto, Ontario MST 2T9 Dear Sir or Madame: Our auditors, Rowlands, Marcellin and Kudel, are making their regular audit of our financial statements. Part of this audit includes direct verification of customer balances PLEASE EXAMINE THE DATA BELOW CAREFULLY AND EITHER CONFIRM ITS ACCURACY OR REPORT ANY DIFFERENCES DIRECTLY TO OUR AUDITORS USING THE ENCLOSED REPLY ENVELOPE, ATTN: Minh Tuan Le. This is not a request for payment. Please do not send your remittance to our auditors. Your prompt attention to this confirmation request will be appreciated. Alexandria Morris Alexandria Morris, Chief Financial Officer The balance due Bessemer Corporation Limited, is $ 613,832.24. This balance is correct except as noted below: Agreed. Date: Jan 5, 2021 By: Rivie Genest Title: Accounting ManagerDecember 31, 2020 Toronto, Ontario 290 Adelaide Street East, Suite 209 Toronto, Ontario MST 219 Dear Sir or Madame: Our auditors, Rowlands, Marcellin and Kudel, are making their regular audit of our financial statements. Part of this audit includes direct verification of customer balances. PLEASE EXAMINE THE DATA BELOW CAREFULLY AND EITHER CONFIRM ITS ACCURACY OR REPORT ANY DIFFERENCES DIRECTLY TO OUR AUDITORS USING THE ENCLOSED REPLY ENVELOPE, ATTN: Minh Tuan Le. This is not a request for payment. Please do not send your remittance to our auditors. Your prompt attention to this confirmation request will be appreciated. Alexandria Morris Alexandria Morris, Chief Financial Officer The balance due Bessemer Corporation Limited, is $ 1,071,910.38. This balance is correct except as noted below: Agree. Date: Jan 6, 2021 By: Anne Amer Title: ControllerBessemer Corporation Limited Yearend Accounts Receivable Circulation It is the 2020 yearend and you have been asked to perform the Accounts Receivable confirmation testing. You have the attached Aged Trial Balance from the CFO. Alexandria Morris. Required Prepare in good form the working papers for the Accounts Receivable and the Allowance for Doubtful Accounts for Bessemer. The balance in the Allowance for Doubtful Accounts is shown on the working paper C2. You should confirm if this is reasonable in your opinion. Materiality has been set at $800,000 based on sales. You should use the following section references: C - Accounts Receivable You can also use the following standard audit symbols plus making up your own -Footed - Cross footed - Calculated by auditor Immaterial - no further audit work necessary For more information on year end substantive procedures visit: Professional Engagement Guide (PEG): https:/researchguides.georgebrown.ca/c.php?g=490436&p=3356872 Here are some Youtube videos on working papers: https:/www.youtube.com/watch?v=7KLaWcLeTIU And of course, save yourself time and frustration by seeing me. Note: Any time there is a reference to payments received after year end, you may use the simplifying assumption that you can trace the payment to the January cash receipts listing. E.g. step 4a - + 61.8% 99+ 2 x 21:42 10/12/2020Clipboard Font Alignment Number styles Cells Editing Analysis Sensitivity utoSave On . Fg ~ ~ fxc fx - ectangle 3 X V fx A B C D E F G H I J K L M N O P Q R S T U V Client Bessemer Corporation Limited Reference C As at December 31, 2020 Init Date Prepared by MTL Dec-11-2020 Reviewed by MTL Dec-11-2020 Accounts Receivable Lead Sheet Balance Adjusted Per G/L Adjustments Balance 2019 Trade Accounts Receivable $ 8,306,375 $ 8,306,375 # 9,739,994 Allowance for Doubtful Accounts (127,000) (127,000) # (152,000) Net Accounts Receivable $ 8, 179,375 $ $ 8, 179,375 # $ 9,587,994 f Conclusion LeadSheet Adjustments Confirmation Procedures Confirmation Statistics ATB ConfirmSummary C - 1 ... + 4 ady 90% O O 2 X 21:31 99+ ENG 10/12/2020Clipboard s Font Alignment Number Styles Cells Editing Analysis Sensitivity AutoSave on . Fg ~ ~ fx fx - G32 X fx B C D E F G H I J K L M N P Q R S T U V Client Bessemer Corporation Limited Reference C 1 As at December 31, 2020 Init Date Prepared by MTL Dec-11-2020 Reviewed by MTL Dec-11-2020 Accounts Receivable - Adjusting Journal Entries W N Trade Accounts Receivable 14 15 16 32 LeadSheet Adjustments Confirmation Procedures Confirmation Statistics ATB ConfirmSummary C-1 ... + Ready - + 90% x 21:3 Eli ENG 10/12/2020AutoSave Jx JX W19 X V B C D E F G H I J K L M N O P Q R S T U V W X Y Z AA AB AC AD AE AF AG AH AI AI AK AL AM AN AO AP AQ AR AS AT AU AV AW AX AY AZ BA BB BC BD BE Prepared b MTL Dec-11-2020 Reviewed by MTL Dec-11-2020 W/P Initial if Accounts Receivable Confirmation Ref completed Notes or Summary of unanticipated exceptions 1 Obtain an aged trial balance of individual c C4 MTL a Foot the Customer Balance totals to check the grand total. b Agree the total of customer accounts to the Trade Recievables account per the CA DRR 12 G/L. Identify large and unusual items With the help of management, identify any related party receivables DRR None. Obtain written client representations regarding pledge, discount or assignment of 1.3 DRR See management representation letter. All receivables, and about receivables from officers, directors, affiliates or other receivables owned by Bessemer Corporation related parties. Limited Evaluate the adequacy of the allowance for doubtful accounts Currently $127,000 Recommend an allowance of s Document method used to estimate allowance for doubtful accounts. Accounts receivable confirmation procedures Select 3 highest accounts C4 MTL 20 Select 5 accounts at random C4 MTL For each customer account chosen, cross foot the aged amounts to check that 21 they equal the customer total d Document how the sample of accounts receivable was chosen (i.e., judgmental or DRR Three largest chosen by examination. Five using monetary unit sampling). This should include, the desired percentage of random selections chosen using rofessional coverage (judgmental), starting point and intervals (monetary unit sampling), etc. judgement. 22 Prepare the confirmation requests and maintain control over the requests until 23 they are mailed. After 10 days, with no reply received, mail a second request. List any accounts not confirmed at client's request DRR Client did not restrict selection of client 25 accounts chosen for circulation. Obtain explanations for management's refusal and obtain audit evidence as to their validity (such as poor response rate for multi-national customers). If management's refusal is unreasonable, record details on Form 330 for further 26 Where confirmations are not returned of ctory, perform alternative 27 auditing procedures such as: Agree subsequent payments to the acc ount and to duplicate deposit slips. Reviewed subsequent cash receipts. All amounts collected. Agree shipping records an d sales invoices to the account. When confirmation replies indicate that a difference exists: Ask management for as e in reconciling the differences. See confirmation letters. Determine if difference reflects an e adjusted or is solely a LeadSheet Adjustments Confirmation Procedures Confirmation Statistics ATB ConfirmSummary C-1 ... + Ready + 55% 994 x ENG 21:33 10/12/2020 LJAutoSave On . g ~ ~ fx fx - T18 X V fx A B C D E F G H I J K L M N O P Q R S T U V W X Y Z AA AB AC AD AE AF AG AH AI AJ AK AL AM AN AO AP AQ AR AS AT AU AV Entity Bessemer Corporation Limited Reference C 3 As at December 31, 2020 Initials Date Prepared by MTL Dec-11-2020 Reviewed by MTL Dec-11-2020 W /P Initial if Accounts Receivable Confirmation Ref completed |Notes or Summary of unanticipated exceptions Complete the confirmation statistics summary and estimate any adjustments to the gross amount of accounts receivable Confirmation Summary % 0 % of total W/P Ref Amount Confirmation Receivables Total of high value accounts C5 3,680,502 79% 44% or un Total of random selection 952,581 21% 11% Total circulation C5 $ 4,633,082 56% Net differences noted in sample 0% Adjusted circulation tota 4,633,082 Gross receivables per books $ 8,306,375 Less: adjustment per sampling results Adjusted gross total of trade accounts receivable 8,306,375 LeadSheet Adjustments Confirmation Procedures Confirmation Statistics |ATB ConfirmSummary C-1 ... + 90% Ready 21:33 Ei 2 X ENG 99+ 10/12/2020AutoSave on O Fg ~ ~ fx fx - E48 X fx B C D E F G H I J K L M N P Q R 7 Aged Trial Balance 8 As at December 31, 2020 9 0-30 days 31-60 days 61-90 days 90+ days Total TO 11 Ajax, Ontario 1,850.69 13,383.35 11,972.38 1,292.98 28, 499.40 12 Brandon, Manitoba 12,558.09 23,420.97 1,425.00 2,803.50 40,207.56 # 13 Charlottetown. Prince Edward Island 23, 702.66 23, 003.08 11,499.55 58, 205.29 14 Drummondville, Quebec 22,577.69 11,206.78 (5,392.11) 28,392.36 15 Edmonton, Alberta 370,879.63 324,991.50 119, 412.68 10, 109.22 825, 393.03 # ericton, New Brunswick 19,692.94 29,773.06 7,492.05) 41,973.95 # 17 Guelph, Ontario 18, 649.17 19,923.39 1,857.33 4,688.03 45, 117.92 18 Halifax, Nova Scotia 38, 100.51 64,821.55 141,856.24 342.62 245, 120.92 # 19 Ingersoll, Ontario 10,600.80 11,992.55 1,602.35 2, 439. 15 26,634.85 20 Jasper, Alberta 655.38 3,684.66 6,539.37 566.55 11,445.96 # 21 Kingston, Ontario 61,808.99 227,501.24 208,223.95 497,534.18 22 London, Ontario 11, 482.58 192, 406.39 1 16,345.24 320,234.21 23 Montreal, Quebec 557,641.91 1, 196,812. 16 1,755.97 16,988.06 1,783, 198. 10 # 24 Newmarket, Ontario 12,812.59 70, 346.24 3,350.53 1,358.74 87,868. 10 25 Ottawa, Ontario 288,365.50 358,765.57 170,774.29 817, 905.36 26 Peterborough, Ontario 13,727.47 120,459.21 935.98 1,378.09 136,500.75 27 Quebec City, Quebec 1, 118.64 147,276.92 10, 992.82 159, 388.38 28 Regina. Saskatchewan 26,701.66 569, 683. 11 17,447.47 613,832.24# 29 St. John's, Newfoundland 68,866. 18 221,639.8 1,933.65 7,796.74 300,236.4 30 Toronto, Ontari 146,611.21 794,594.21 130, 704.96 1,071,910.38 # 31 Unionville, Ontario 38, 995.41 69, 158.74 3,081.52 111,235.67 32 Vancouver, British Columbia 252, 049.81 298, 333.31 235, 006.64 785,389.76 33 Whitehorse, Yukon Territories 2, 180.42 6,315.59 (72.66) 8,423.35 34 Xanadu, Nunavut 42, 910.30 183, 973.29 6,238. 15 2, 197.87 235, 319.61 35 Y lowknife, 3,384.83 10,314.88 674.23 14, 373.94 36 Zephyr, Ontario 3,352.33 8,242.68 300.43 137.88 12, 033.32 37 38 2,051,277.39 5,002,024.31 1, 190,053.75 63,019.59 8,306,375.04 39 40 Less: Allowance for doubtful accounts 127,000.00 41 Net Receivables as per balance sheet 8, 179,375.04 LeadSheet Adjustments Confirmation Procedures Confirmation Statistics ATB ConfirmSummary C-1 ... + Ready + 90% O Eli 99+ 2 Her X Q C Z ENG 21:34 10/12/2020AutoSave on . Fg ~ ~ fx fx - H30 X v fx A B C D E F G K L M N O P Q R S T Reference C 5 Init Date Prepared by MTL Dec-11-2020 Reviewed by MTL Dec-11-2020 Client Bessemer Corporation Limited As at December 31, 2020 Accounts Receivable Confirmation Summary Date confirmed Jan-6-21 12 Amount Amount Timing Real Percent of Circulated Confirmed Differences differences Confirmation a Select 3 highest accounts Montreal, Quebec 1,783, 198 Toronto, Ontari 1,071,910 1,071,910 Edmonton, Alberta 825,393 Total of high value account 3,680,50 1,071,910 79.4% b Select 5 accounts at random 0.0% Brandon, Manitoba 40,208 28,145 12,062 Fredericton, New Burnswick 41,974 41,974 Halifax, Nova Scotia 245,121 Jasper, Alberta 11,446 11,446 25 Regina, Sakatchewan 613,832 613,832 Total of random selection 952,581 595,397 12,062 20.6% Total 4,633,082 1,767,308 12,062 100.0% 28 29 30 31 LeadSheet Adjustments Confirmation Procedures Confirmation Statistics ATB ConfirmSummary C-1 ... + Ready - + 90% Fi A 99+ X ENG 21:35 10/12/2020December 31, 2020 Brandon, Manitoba 290 Adelaide Street East, Suite 209 Toronto, Ontario MST 219 Dear Sir or Madame: Our auditors, Rowlands, Marcellin and Kudel, are making their regular audit of our financial statements. Part of this audit includes direct verification of customer balances. PLEASE EXAMINE THE DATA BELOW CAREFULLY AND EITHER CONFIRM ITS ACCURACY OR REPORT ANY DIFFERENCES DIRECTLY TO OUR AUDITORS USING THE ENCLOSED REPLY ENVELOPE, ATTN: Minh Tuan Le. This is not a request for payment. Please do not send your remittance to our auditors. Your prompt attention to this confirmation request will be appreciated. Alexandria Morris Alexandria Morris, Chief Financial Officer The balance due Bessemer Corporation Limited, is $ 40.207.56. This balance is correct except as noted below: Paid $ 12,062.27, Dec 27. Date: Jan 5, 2021 By: Kaitlin Hebert Title: Controller
