Using the following Trial Balance from Apollo Shoes, conduct preliminary analytical procedures by choosing two to three relationships that appear to be of particular concern given the prior years audited trial balance. For example, the amount of Property, Plant and Equipment (PP&E) should be correlated to the amount of depreciation expense. While not a perfect correlation, in general, if PP&E increases by 10%, we would expect depreciation expense to increase by about 10%.

If youre not familiar with a trial balance, it is a listing of all of the accounts that will eventually become the financial statements. The financial statements will aggregate the accounts into broader categories. For example, in the Apollo Shoes trial balance, all of the accounts that begin with 10 are the cash accounts. Trial balances will show the ending balance of the debits and credits. Some companies will list credit balances as negative numbers to ensure that the sum of all accounts are zero. Apollo Shoes made credit balances negative.