plz finish the questions of module XIII-XV, see the attachments,

Module XIII: Mortgage Note Payable and Note Payable to Bank Two In addition to a deferred tax liability relating to temporary book and tax depre ciation differences, Biltrite's longterm liabilities consist of the following:10% mortgage note payable to Dallas Dollar Bank$60 million; and12% note payable to Bank Two$45 million. In 2004, Biltrite upgraded its manufacturing facilities at a cost of $150 mil lion. The project was financed by issuing 2 million shares of common stock at $25 per share, and by issuing a $100 million 10% mortgage note payable to Dallas Dollar Bank. The mortgage agreement requires repayment in ten annual installments of $10 million each. Interest on the unpaid principal is payable on the first day of each month. The principal installments are due on January 1. The next payment is due on 1/1/10. The 12% note payable to Bank Two was issued to alleviate the effects of the liquidity problems encountered in 2009. This note is unsecured and requires repayment in ten equal annual installments. Unlike the Dollar Bank mortgage loan, interest on the Bank Two loan is payable annually. The first principal install ment, together with interest, is due on 3/1/10. This note contains restrictive covenants, as described earlier, relating to a $10 million compensating balance requirement and restrictions regarding further borrowing and dividend payments. Derick has asked that you analyze the longterm notes payable, being partic ularly alert to any violations of the restrictive covenants contained in the Bank Two loan agreement. Requirements 1. Using the spreadsheet program and downloaded data, retrieve the file labeled \"Notes.\" Locate the following documentation in this file: WP 14Notes payable and accrued interestlead schedule; and WP 14.3Notes payablelongterm. Scroll to WP 14.3, \"Notes PayableLongTerm.\" What are the audit objec tives in the examination of longterm notes payable? What would the auditor consider to be the most relevant assertions? Has the evidence provided in the document addressed the audit objectives and the most relevant assertions? 2. Record Reclassification Journal Entry C for the current portion of both notes as of 12/31/07, and enter the amounts in WP 14.3. Now scroll up to WP 14, the lead schedule for notes payable and interest. Post your reclassifications to the lead schedule. 3. Print documentation 14 and 14.3. 4. What is the probable nature of the adjustment to \"notes payable trade\" and to \"interest payable\" appearing in the adjustments column of the lead schedule? Module XIV: Working Trial Balance Upon completion of substantive audit testing, the auditor should post all audit adjustments and reclassification entries to the working trial balance and extend the audited balances. The extended balances then form the nucleus for the audited financial statements. Selected analytical procedures also should be applied at the conclusion of the audit. The results may be compared with those developed during the audit planning phase. This approach provides added support for audit conclusions contained in the documentation. Derick has asked you to post the adjustments and reclassifications and to per form the reviewphase analytical procedures. Requirements 5. The instructor's CD contains a file labeled \"AJE\" (adjusting journal entries). It contains all of the audit adjustments and reclassifications that you devel oped in prior modules of this practice case. At this time, your instructor will supply you with a printout of this file. Review the adjustments, which will be presented to the client as proposed audit adjustments. Derick has set the following materiality thresholds: Income statement $ 435,000 Balance sheet $1,542,270 Given these thresholds and referring to the proposed audit adjustments and reclassifications, determine whether the potential adjustments equal or exceed the income statement or balance sheet materiality threshold in the aggregate. Treat income overstatements and income understatements sepa rately. Do not net understatements against overstatements. That is, if aggregate overstatements are $600,000 and aggregate understatements are $500,000, the adjustments should be proposed to Biltrite management, inasmuch as both exceed the income statement materiality threshold. 6. Retrieve the file labeled \"WTB.\" Post the adjustments and reclassifications to the working trial balance. Observe the following rules in making your postings: Post account increases as positive amounts, and post account decreases as negative amounts; Postings are in \"thousands of dollars,\" whereas the adjustments and reclassifications are rounded to the nearest dollar. Therefore, in posting the adjustments and reclassifications, round to the nearest $1,000. Enter AJE numbers as text by typing a single quote before the number \"1\" so that they do not get included in the final balance. 7. d. Do not foot the adjustments and reclassifications columns (they will automatically be reflected in the audited column as you post them). 8. Save your file under the title \"WTB,\" then print it. 9. Retrieve the file labeled \"AUDBS.\" Using your printout of the working trial balance, enter the amounts from the audited column in the 2009 balance sheet. Calculate the percentages of individual balance sheet items and components relative to totals for 2009. 10. Calculate the new ratios for 2009 based on the audited financial statements. What is the purpose of applying analytical procedures in the evaluationand review phase of the audit? Is it important to develop expectations as part of performing these final analytical procedures? 11. Print the comparative audited balance sheets together with the related ratios. Compare them with the balance sheets and ratios that you devel oped and printed in requirement (5b) of Module I. What conclusions can you draw regarding the comparison? 12. Retrieve the file labeled \"Budget,\" which you reviewed as part of your assignment in Module I. You will recall that the purpose for this review was to identify significant budget variances that could be the result of under or overbudgeting, misstatements in recording data, or intentional misstatement. The auditor, of course, is concerned with the latter two possibilities. Substitute the audited amounts from your adjusted working trial balance for the unaudited figures in the \"Actual 12/31/09\" column. Save your file, as revised, under a new file name (e.g., \"Biltbudg\"), so as not to lose the original Module I file. Print the revised budget/actual comparison. Do significant variances still exist? If so, are you satisfied that the audit has resolved the causes of the significant variances? (Compare the var iances resulting from this analysis with those calculated in Module I.) If you continue to have concerns about certain variances, what additional evidencegathering and evaluation procedures do you suggest? Module XV: Audit Report The Denise Vaughan audit team completed its audit field work on February 15, 2010. A conference was held on that date involving members of the audit firm and Biltrite management. Participants in the conference were Denise Vaughan, partner in charge of the Biltrite engagement; Carolyn Volmar, audit manager; Richard Derick, in charge auditor; Trevor Lawton, Biltrite's CEO; Gerald Groth, Biltrite's controller; and Marlene McAfee, Biltrite's trea surer. The Biltrite representatives agreed to all of the audit adjustments and reclassifications proposed by the audit team, and they agreed to reflect them in the December 31, 2009, financial statements. They also agreed to modify and/or add footnote disclosures as recommended by the audit team. At the conclusion of the conference, the audit team obtained a client repre sentation letter from Biltrite management and presented management with a copy of the \"significant deficiencies\" letter outlining discovered internal control deficiencies. The original of this letter was sent to Biltrite's audit committee. The legal action initiated against Biltrite by Rollfast, a competitor, for alleged patent infringement, was not yet settled as of February 15. Because the letter obtained by Derick from Biltrite's outside legal counsel was inconclusive as to the probable outcome of this action, Derick requested an informal con ference with the attorney handling Biltrite's case. This conference was con vened on February 12, and the participants were Joel Haskins, the attorney, Gerald Groth, Denise Vaughan, and Richard Derick. Haskins exhibited a degree of pessimism that produced considerable uncer tainty as to the probable outcome of the litigation. Inasmuch as the amount of loss could be quite substantial, and the probability of an unfavorable outcome was more than remote but less than likely, Groth agreed to disclose the matter in a footnote to the 2009 financial statements. Notwithstanding the liquidity problems and loan default, Biltrite has been assured by Bank Two management that the bank plans no foreclosure action, provided Biltrite can restore the minimum required bank balance and con tinues to earn profits. Moreover, management's expressed plans for dealing with the crisis and continued sales growth during January 2010 have convinced Denise Vaughan that an explanatory paragraph expressing substantial doubt as to continued existence is not necessary. No scope restrictions were encountered during the audit, either imposed or otherwise. Also assume that Biltrite did not change accounting principles in either 2008 or 2009. Requirements 13. Using the spreadsheet program and downloaded data, retrieve the file labeled \"Report.\" 14. Modify the report as appropriate to conform to the Biltrite audit results