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The auditors of TQ, Inc, a calendar-year corporation, obtained the selected inlormation for years 1 and 2 localed on the Financial Information tab he audiors
The auditors of TQ, Inc, a calendar-year corporation, obtained the selected inlormation for years 1 and 2 localed on the Financial Information tab he audiors are performing analytical procedures relative to the expectations of expenses for year 2 ad h ve established a materiality threshold of 5% of the year 2 ac ount balance For each of the accounts in column A below, consider the addiional notes in column B and the information in the Financial Information tab, and In column C, enter the audio's expectation of year 2 expense Round all amounts to the nearest dollar Consider each account independently . Auditor's expectation Expense Additional notes Bonus expense for year 2 is expected to be 7% of total prior-year 2 Bonus expense 3 Short-tem disability expense 4 Office salary expense wage and salary expense if total unit sales increase by more than 5% Short term dsability expense for year 2 is expected to be 2% of th prior-year wage and salary expense Average salaries increased 4% effective July 1 year 2 Headcount was 40 in year 1 and increased to 48 on July 1, year 2 TQ matches 50% of the first 6% of total current-year compensation (salaries, wages, and bonuses) for participating 4n1/ matrh avnonse The auditors of TQ, Inc, a calendar-year corporation, obtained the selected inlormation for years 1 and 2 localed on the Financial Information tab he audiors are performing analytical procedures relative to the expectations of expenses for year 2 ad h ve established a materiality threshold of 5% of the year 2 ac ount balance For each of the accounts in column A below, consider the addiional notes in column B and the information in the Financial Information tab, and In column C, enter the audio's expectation of year 2 expense Round all amounts to the nearest dollar Consider each account independently . Auditor's expectation Expense Additional notes Bonus expense for year 2 is expected to be 7% of total prior-year 2 Bonus expense 3 Short-tem disability expense 4 Office salary expense wage and salary expense if total unit sales increase by more than 5% Short term dsability expense for year 2 is expected to be 2% of th prior-year wage and salary expense Average salaries increased 4% effective July 1 year 2 Headcount was 40 in year 1 and increased to 48 on July 1, year 2 TQ matches 50% of the first 6% of total current-year compensation (salaries, wages, and bonuses) for participating 4n1/ matrh avnonse
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