You are the auditor of Oriole Services Inc., a privately owned full-service cleaning company following ASPE. It is undergoing its first audit for the period ended September 30, 2023. The bank has requested that Oriole have its statements audited this year to satisfy a condition of its debt covenant. It is currently October 21, 2023, and the company's books have been closed. As part of the audit, you have found the following situations: 1. Despite having high receivables, Oriole has no allowance for doubtful accounts, and cash collections have slowed dramatically. Unfortunately, Oriole was owed $5,300 by Brad's Fast Foods at the end of fiscal 2023. Brad's has received substantial media attention during the past year due to Department of Health investigations that ultimately resulted in the closure of the company's operations; the owner has apparently moved to the Bahamas. No adjustment has been made for this balance. Oriole's management estimates that an allowance for doubtful accounts of $49,820 is required. During the 2023 fiscal year, the company wrote off $40,280 in receivables, and it estimates that its September 30, 2022 allowance for doubtful accounts should have been $31,800. 2. Oriole's only capital asset on its books is an advanced cleaning system that has a cost of $37,100 and a carrying amount of $22,075. Oriole has been depreciating this asset using the capital cost allowance used for tax purposes for the two years prior to its year ended September 30, 2023, at the rate of 30%. Useful life at the time of purchase was estimated to be 10 years. Oriole would like to change to a straight-line approach to provide more relevant information to its statement users. Management anticipates that the asset will continue to be of use for four years after the September 30, 2023 year end and will have no residual value. Because the company's accountant was uncertain about how to deal with the change, depreciation expense has not been recorded for the fiscal year. 3. Oriole purchased equipment at the beginning of the fiscal year and immediately expensed its $3,300 cost to the account Office Expense. When questioned, one of the owners said he thought the equipment would likely not need to be replaced for at least two more years. 4. You notice that there are no supplies on the statement of financial position. Company management explains that it expenses all supplies when purchased. The company had $1,590 of cleaning supplies on hand at the end of September 2023, which is about $530 higher than the balance that was on hand at the end of the previous year. 5. This year, Oriole started to keep a small amount of excess cash in trading investments that are bought and sold on the local stock exchange. At the end of September 2023, the fair value of this portfolio was $15,900 and the carrying value of the investments was $12,720 (which represented the cost of the investments).