these questions I am not completely sure of. The underlined statements, we can accept/change/delete.
Scroll down to complete all parts of this task. A CPA rm is auditing JNN Inc., a calendar year-end nonissuer, for the Year 4 audit. JNN is a small manufacturing company that manufactures and sells copiers. JNN began operations in 01 Year 1. This is the fourth consecutive year the CPA rm has been engaged to audit JNN. The audit staff created the following to document the performance of audit data analytics related to sales. The primary objective of this audit data analytics is to provide information relevant to assessing and responding to the risks of material misstatement related to occurrence, completeness, and accuracy of revenue. As the audit senior for this engagement, you have the responsibility to review and revise this document, as needed. Use the additional information in the exhibits above to help determine whether any revisions are necessary. TO revise ine documentaLOT, CHICK On each SeyITIerIL OI underlined Lexi below and select ine needed correction, if any, from the list provided. If the underlined text is already correct in the context of the documentation, select [Original text] from the list. If removal of the entire underlined text is the best revision to the list, select [Delete] from the list. Objective of the Audit Data Analytics (ADA) In addition to other risk assessment procedures related to occurrence, completeness, and accuracy of sales, we performed audit data analytics to help us determine whether we needed to modify our current risk assessment. The primary objective of this test was to help identify whether there were any unusual (or unexpected) changes in revenue or sales mix from prior years that may affect ourany unusual (or unexpected) changes in revenue or sales mix from prior years that may affect our current risk assessment related to occurrence, completeness, and accuracy of sales and related response to that risk. Furthermore, we will determine whether significant declines in sales indicate potential issues with existence of fixed assets (as a result of obsolescence) or the completeness of warranty provisions (if the declines are due to quality issues). Data Population The revenue data is derived from the client's general ledger and the units sold for each copier for the four years were obtained from the company's database, which were both accessed using audit software.Techniques, Tools, Graphics, and Tables Used We decided to use the following graphics: A graphic showing revenue over the past four years. A graphic showing trends in sales of each type of copierAs expected, revenue for the first three quarters of the current year is less than the previous year's due to the new debt acquired. In the final quarter, revenue approximates last year's levels. Evaluation of the results The performance of the ADA confirmed our directional expectations and were consistent with the results of our other risk assessment procedures related to occurrence, completeness, and accuracy of revenue. As a result, we did not modify the current risk of material misstatement related to occurrence, completeness, and accuracy of revenue.There were some significant changes in sales mix in Year 4 that we did not originally anticipate based on our other risk assessment procedures. We increased the assessed risk related to the valuation of fixed assets due to the significant declines in Copier 100A and 200A in Year 4. We plan to respond to this with an increase in sample size. In addition, based on the reason for the decline in sales, we decided to increase the risk of material misstatement related to the - - ----- - - - completeness of warranty provisions
