plz finish the questions of module XI-XII, see the attachments,

In Module IV, you applied MUS sampling procedures in evaluating the correct- ness of a subset of debits to the \"Factory Equipment\" account. You will recall that the debits to account 1530 totaled $89,860,000 for 2009. You will also recall that Derick decided to stratify the population of debits such that $77,260,000 of major additions, representing replacements of worn-out equipment, was to be audited in detail. In Module XI, you will analyze this subset of additions, as well as disposals. You will also complete the \"Plant Assets\" lead schedule. Requirements 1. Using the spreadsheet program and downloaded data, retrieve the file labeled \"Plant.\" Locate the following documentation in this file: WP 11Plant assets and accumulated depreciation lead schedule (note that AJE 1 from Module IV has already been posted); and WP 11.4Factory equipmentadditions and disposals. Scroll to WP 11.4,\"Factory EquipmentAdditions and Disposals.\" What is the nature of the \"underlying documentation\" referred to in the explanation of audit legends E and W? 2. In recording the 2009 disposals, Janel James, Biltrite's plant assets accoun- tant, miscalculated the accumulated depreciation on the assets sold and thereby overstated the gain on disposal by $3,090,000. Draft Audit Adjust- ment 10 at the bottom of WP 11.4 to correct for this misstatement. In addition, James did not change the standard journal entry for monthly depreciation to reflect additions and disposals during the year. As a result depreciation expense for the year is understated by $800,000. Biltrite depreciates factory equipment on a straightline basis over a ten-year esti- mated useful life with zero salvage value. One-half year's depreciation is taken on all additions and disposals. Draft Audit Adjustment 11 at the bottom of WP 11.4 to reflect the depreciation understatement. In recording the under-depreciation, debit account 5300,\"Cost of Goods SoldPike's Peak Mountain Bike,\" inasmuch as all overhead accounts have been closed. Any further adjustments, therefore, must be reflected in the cost of sales accounts. Although in Module IV we allocated the adjustment to the five product cost of sales accounts, the present adjustment is less significant in amount, and therefore we will reflect the entire amount in account 5300. (Note: Don't forget to enter Audit Adjustments 1, 10, and 11 in the body of the document to arrive at correct adjusted balances.) 3. Scroll to WP 11,\"Plant Assets and Accumulated Depreciation Lead Schedule.\" Post Audit Adjustments 10 and 11 to the lead schedule. 4. Print documentation 11 and 11.4. Allowance for Sampling Risk\" schedule by ranking the projected misstate- ments as appropriate. (Hint: If you forgot how to do this, refer to Chapter 8.) 5. Print the document. 6. Explain the meaning of the following amounts: a. Basic precision;b. Incremental allowance for sampling error; c. Allowance for sampling risk; andd. Upper misstatement limit. 7. Evaluate the sampling results. Do they support Derick's concerns regarding possible material misstatement? Note the audit adjustment based on mis- statements discovered while examining the sample. Is this adjustment ade- quate to bring the population into acceptable bounds? If not, what alternate actions might you choose to pursue, based on the sampling results? Module XII: Estimated Liability for Product Warranty All Biltrite products are sold under a one-year warranty covering all parts and labor. Repairs are performed locally, either by the dealer who sold the bicycle or by local entities licensed as official Biltrite bicycle repair shops. Biltrite reimburses the dealers and shops for labor and parts. Reimbursement is based on work orders submitted by the repairing agency. The customer signs the work orders, and the serial number of the product repaired also appears on each work order. Defective parts or products replaced must be returned with the accompanying work order. The parts and products are received and logged in on color-coded receiving reports designed for returns. At the end of each month, the following standard journal entry is posted as an adjustment to estimated product warranty. 8330 Product Warranty Expense 2070 Estimated Product Warranty Liability For 2009, the company applied 0.5% to cost of goods sold in determining the amount of the monthly adjustment. Debits to account 2070 are for reimburse- ments and for product and parts replacements. Defective parts and products are \"zero valued\" and placed in the rework department. Derick has asked you to analyze product warranty and determine the appropriate balance in the liability account. He has already provided you with a partially completed document and a clientprepared analysis of returns over the past four years. You have completed the document and are now ready to evaluate the adequacy of the balance. Requirements 8. Using the spreadsheet program and downloaded data, retrieve the file labeled \"Warranty.\" Examine the document carefully and comment on its adequacy and completeness. (Note that the 12/31/08 audited balances appear to be unreasonable because you have not yet selected an appropriate provision percentage based on the \"data from client-prepared analysis of warranty claims.\") 9. Scroll to the bottom of WP 20 and enter audit adjustments already made in previous modules that affect cost of goods sold for 2009. You should iden- tify the following adjustments. (If you weren't assigned the respective mod- ules, ask your instructor for details regarding amounts and accounts.) AJE No. 1 (Module IV correction of repairs expense capitalized as factory equipment); and AJE No. 3 (2009 purchase recorded in 2010, detected in completing Module VI). 10. What comprises the documentation examined by the auditor (audit legend E) supporting the debits to account 2070? 11. How would you audit the client-prepared analysis of warranty claims? (See \"Year of Claim/Year of Sale\" analysis in the middle of WP 20.) 12. Enter equations in cells C44, D44, and E44 that will calculate the percentage of warranty claims to cost of goods sold for each of the three years 2004-2006. 13. Note the percentage that now appears in cell B46 and the resulting adjust- ment to product warranty expense. 14. Draft AJE No. 12 on the document. 15. Print the document. 16. Shelly Ross, the other assistant auditor on the engagement, asks why you didn't adjust the prior years under provision through beginning retained earnings. What is your response