What comprises the documentation examined by the auditor (audit legend E)? Supporting the warranty claims and reserves.

WP 20 Brony's Bikes Estimated Liability for Product Warranty December 31, 20X9 Prepared by: Date: Reviewed by: Date: Account 8330 Warranty Expense VYX9 Audited balance 20x9 Provision for warranty Account 2070 Estimated Liability $860,000 $1,139,000 & $1,139,000 $1,999,000 ($1,455,000) E 20x9 Warranty claims by customers 12/3YX9 Ledger balance $544,000 $1,139,000 Recommended audit adjustment (below) $286,883 $286,883 1213VX9 Audited balance $830,883 $1,425,883 Explanation of audit legends: & Recalculated at 12% of cost of sales E Examined underlying documentation on a test basis Data from client-prepared analysis of warranty claims: Year of Sale 20x8 Year of Claim 20x9 20x7 20X6 $412,000 $1,100,000 20X6 20X7 20x8 20x8 $344,000 $830,000 $246.000 $895,000 $560,000 $1,141,000 $1,174,000 $1,512,000 Cost of Goods Sold $231,157,214 - $215,600,000 $209,440,000 $211,365,000 Warranty claims as a percent of cost of goods sold - 0.53% 0.56% 0.72% Appropriate percentage based on analysis 0.60% Audit Adjustment 12 $286,883 Appropriate provision based on analysis 20x9 claims already honored $1,390,883 ($560,000) $286,883 8330 Product Warranty Expense 2070 Estimated Liability for Product Warranty To adjust liability to amount considered reasonable based on past history of warranty claims. 1231X9 Calculated liability 12/31X9 Ledger balance $830,883 $544,000 Recommended adjustment $286,883 - Unaudited cost of goods sold Audit adjustment No. 1 Audit adjustment No. 3 $227,800,000 $2,503,060 $854,154 Audited cost of goods sold $231, 157,214 WP 20 Brony's Bikes Estimated Liability for Product Warranty December 31, 20X9 Prepared by: Date: Reviewed by: Date: Account 8330 Warranty Expense VYX9 Audited balance 20x9 Provision for warranty Account 2070 Estimated Liability $860,000 $1,139,000 & $1,139,000 $1,999,000 ($1,455,000) E 20x9 Warranty claims by customers 12/3YX9 Ledger balance $544,000 $1,139,000 Recommended audit adjustment (below) $286,883 $286,883 1213VX9 Audited balance $830,883 $1,425,883 Explanation of audit legends: & Recalculated at 12% of cost of sales E Examined underlying documentation on a test basis Data from client-prepared analysis of warranty claims: Year of Sale 20x8 Year of Claim 20x9 20x7 20X6 $412,000 $1,100,000 20X6 20X7 20x8 20x8 $344,000 $830,000 $246.000 $895,000 $560,000 $1,141,000 $1,174,000 $1,512,000 Cost of Goods Sold $231,157,214 - $215,600,000 $209,440,000 $211,365,000 Warranty claims as a percent of cost of goods sold - 0.53% 0.56% 0.72% Appropriate percentage based on analysis 0.60% Audit Adjustment 12 $286,883 Appropriate provision based on analysis 20x9 claims already honored $1,390,883 ($560,000) $286,883 8330 Product Warranty Expense 2070 Estimated Liability for Product Warranty To adjust liability to amount considered reasonable based on past history of warranty claims. 1231X9 Calculated liability 12/31X9 Ledger balance $830,883 $544,000 Recommended adjustment $286,883 - Unaudited cost of goods sold Audit adjustment No. 1 Audit adjustment No. 3 $227,800,000 $2,503,060 $854,154 Audited cost of goods sold $231, 157,214