Question
Plz assist me with these questions The auditors for Weston University are conducting their audit for the fiscal year ended December 31, 2011. Specifically, the
Plz assist me with these questions The auditors for Weston University are conducting their audit for the fiscal year ended December 31, 2011. Specifically, the audit firm is now focusing on the audit of revenue from this season's home football games. While planning the audit of sales of football tickets; one of their newer staff people observed that in prior years, many hours were spent auditing revenue. This staff associate pointed out that perhaps the firm could apply analytical procedures to evaluate whether it appears that revenue account is properly stated.
The staff associate noted that information for a typical home game could be used to estimate revenues for the entire season. The home football season consisted of seven home games - one against a nationally ranked powerhouse, Bloomington University, and six games against conference opponents. One of these conference games is Weston's in-state archrival, Norwalk University. All these were day games except for the games against a conference opponent, Westport University.
The auditor will base their estimate on game played against Kramer College, a conference opponent, Weston University. The following concerning that game is available:
Total attendance 24,000 (stadium capacity 40,000)
The attendance figure includes the 500 free seats described below, and the 24,000 figure should be used as a basis for all further calculations.
Ticket prices
Box seats $12 per ticket
End zone seats 8 per ticket
Upper - deck seats 5 per ticket
At the game against Kramer College, a total attendance was allocated among the different seats as follow:
Box seats 70%
End zone seats 20%
Upper - deck seats 10%
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