You are the auditors of Ty' apollo Limited, a manufacturing company. You are assigned to complete the test of the expenses and have been presented with the attached schedule of expenses for the year ended March 31,2021 and the comparatives for 2020. The audit supervisor has set the materiality level at $55,000.

Required: 

Perform the steps to be carried out in applying analytical procedures to audit the expenses. 

Prepare the worksheet. 

Identify at least five accounts for further investigation and briefly state why and the procedure you will employ in carrying out the investigation.

 

Ty'apollo Limited Income Statement Accounts - All Divisions For the Year Ended March 31, 2021 2021 2020 Sales 153,918,731 148,764,555 Sales Returns and Allowances 184,103 178,518 Cost of Sales 109,284,780 106, 255,499 Salaries-Mana geme nt 2,081,266 2,387993 Salaries-Off ice 315,169 296,681 Liensing and certific ation fees 190,650 172,883 Security 450,603 637,580 Insurance 93,197 103,842