Task #1 The Audit Work paper

Purpose: To ascertain whether service revenue recognized during December, year 7, is complete and accurate in all material respects in relation to the financial statements taken as a whole

As needed, prepare the required adjusting entry in good form (showing debits and credits) for each tick-mark

Client: Griffin, Inc.		Prepared by: Staff Accountant J - 1/24/2008
Service Revenue December 31, 2007		Reviewed by: Senior Auditor K - 2/2/2008
Date	Customer	Amount ($)	Tick-marks
12/2	Slate Co.	22,000	A
12/4	Crater, Inc.	63,500	A
12/15	Globe, Inc.	50,000	C
12/16	Ash Corp.	48,750	A
12/17	Valley, LLP	32,500	X
12/23	Magnolia Corp.	22,750	X
12/27	Marble Co.	55,500	E
12/28	Delta, LLP	95,000	A
12/30	Chestnut, Inc.	75,000	B
12/30	Honeycomb Corp.	43,000	D
12/31	Globe, Inc.	75,400	A
Total		$ 583,400 F	G/L
Explanation of Tick-marks
A	Per review of contract, invoice, and service records, we recalculated the amount of revenue earned and verified that revenue was recognized in the correct period.
B	Per review of the contract and service records, service was finalized and invoiced as of December 31, 2007. Per review of ledger detail the receivable balance was recorded in unbilled receivables at year end.
C	Per review of the $50,000 contract and invoice, service was for the period December 15, year 7, through January 14, 2008, and should be recognized equally between 2007 and 2008 based on the terms of the contract.
D	Per physical inventory observation, this was a consignment sale. The product is at the customers warehouse on 12/31/2007
E	Per the customers purchase order, the invoice payment is not due for 90 days. This product was delivered to a public warehouse and the storage fee will be paid by Griffin
G/L	Agreed amount to general ledger balance at December 31, 2007
F	Amount foots, without exception.
X	Product was invoiced although there is no record of delivery/receipt by the customer