REAL and ACTUAL audit procedures are needed. Auditing. Financial statements assertions. Use the FASB Codification. Find errors and Include FASB Codification and financials statement assertions

1. You are employed as a Sr. Manager for PT. Barnum and Company, CPAs You are auditing Molloy Company, a diverse Privately Held Company Molloy is seeking to go Public in the next year or two 2. Barnum uses FIFO method of Inventory Valuation for Financial Statement purposes. Barnum uses LIFO method of Inventory Valuatin for income Tax purposes 3. Approximately 5,000 Bushels of Wheat have mildew damage and may be unsellable The wheat is located in Boise Idaho and was purchased this fiscal year 4.100,000 gallons of Olive Oil that is included in ending inventory have been sold to Olive Garden Restaurants on 12/28.. Olive Garden is unable to take delivery until 1/10/22 as they do not have the storage capacity to take delivery at 12/31... Olive Garden has requested Molloy to keep the Olive Oil in their inventory until they can receive delivery on 1/10/22 5. 50 ofthe computers held in ending inventory are on consigment from Dell Computers at year end 6. You have an audit staff of 2 partners, 1 senior manager, 3 seniors, and 2 staff accountants 7. PT. Barnum specializes in wholesalers in the Consumer Electonics industry Required: 1. Discuss how to audit the ending inventory of Mollov and the various extensive procedures they would perform. 2. Given the information, discuss the impact on Molloy's Financial Statements. 3. Based on 1 + 2 , provide amounts for Inventory, Revenues, Cost of Goods Sold, and Gross Profit for year end... 2021 2020 Inventory- Consumer Electronics ? 970,625 and Appliances Inventory - Wheat ? 14,275,000 Inventory- Olive Oil ? 2,619,000 Revenues ? n/a Cost of Goods Sold ? n/a Gross Profit ? n/aElectronics are held in the following warehouses: Edison, New Jersey Riverhead, New York Oneonta, New York Wheat is held in the states with corresponding # of grain elevators: Witchita, Kansas (16) Kansas City, MO (13) Boise, Idaho (15) Olive Oil is held in vats with corresponding number of gallons capacities in the following locations at warehouses: Trenton, New Jersey (275,000 gallons) Newark, New Jersey (350,000 gallons) Jersey City, New Jersey (425,000 gallons)Consumer Electonics: Beginning Inventory: # of Units Cost Description 255 2,000 52" Flat Pannel TVs 150 1000 Computers 225 50 DVD Players 555 125 X Box 500 75 VCRs 100 125 Analog TVs Purchased: 200 2150 52" 200 1250 Computers 125 150 X Box 360 100 75 DVD Players Sold: Selling Price 400 52" Flat Pannel TVs 2,500 300 Computers 1,500 25 X Box 75 75 VCRs 50 100 X Box 360 175Wheat: Ave Beginning Inventory: # of Bushells Cost Witchita, Kansas (16) 10,000 400 Kansas City, MO (13) 12,000 395 Boise, Idaho (15) 15,000 399 Purchases Witchita, Kansas (16) 5,500 410 Kansas City, MO (13) 7,000 411 Boise, Idaho (15) 10,000 412 Sales Selling Price Witchita, Kansas (16) 12,000 425 Kansas City, MO (13) 15,000 435 Boise, Idaho (15) 20,000 430 Ave Olive Oil # of Gallons Cost Beginning Inventory: Trenton, New Jersey 250,000 3.00 Newark, New Jersey 300,000 3.10 Jersey City, New Jersey 400,000 3.09 Purchases Trenton, New Jersey 225,000 2.95 Newark, New Jersey 200,000 2.85 Jersey City, New Jersey 300,000 2.90 Sales Selling Price Trenton, New Jersey 175,000 4.50 Newark, New Jersey 225,000 4.65 Jersey City, New Jersey 550,000 4.62