You can only answer part 16-1 (steps 2,3,5), 16-2, 16-3, 16-4, and Evaluation. Thanks!

In this mini-case you will audit and evaluate documents such as bank confirmations and bank reconciliations in the audit of one of EarthWear's cash accounts. The company has several other cash accounts at various banks, you will focus on only EarthWear's primary general cash account used mostly for cash receipts and various business expenses. When payments on accounts receivable are collected from customers the cash is deposited, along with any cash from cash sales, in this general account. Steve Alsop, an audit senior for Willis & Adams, CPAs, has completed several of the audit steps in the substantive audit program for the cash account you will examine in this mini-case. There are five audit steps remaining that he has INSTRUCTIONS: Read all steps in the audit program for cash found on Work Paper 16-1 and familiarize yourself with work papers 16-1 through 16-7. Complete steps 2, 3, 5, 9, 10, and 12. Be sure to document your work using the designated tick marks. You will select the correct tick mark from the drop down menu in the highlighted cells on each work paper. The tick mark legend is located at the bottom of each work paper. If you find an error in performing a procedure, select "Error" from the drop down menu. When you have completed each step, document the results Fields you are to complete are colored yellow. The color will disappear as the field is completed. When you are finished with each work paper, enter your initials in the yellow box with title "Initial Here." 14 2 On the worksheet labeled "Evaluation", identify at least one assertion substantiated (tested) by the audit procedures you performed (steps 2, 3, 5, 9, 10, and 12 listed in Work Paper 16-1) and identify what notential errors could be detected by nerforming the nocedure Read all steps in the audit program for cash found on Work Paper 16-1 and familiarize yourself with work papers 16-1 through 16-7. Complete steps 2,3,5, 9, 10, and 12. Be sure to document your work using the designated tick marks. You will select the correct tick mark from the drop down menu in the highlighted cells on each work paper. The tick mark legend is located at the bottom of each work paper. If you find an error in performing a procedure, select "Error" from the drop down menu. When you have completed each step, document the results Fields you are to complete are colored yellow. The color will disappear as the field is completed. When you are finished with each work paper, enter your initials in the yellow box with title "Initial Here." 3. On the worksheet labeled "Evaluation", identify at least one assertion substantiated (tested) by the audit procedures you performed (steps 2, 3, 5, 9, 10, and 12 listed in Work Paper 16-1) and identify what potential errors could be detected by performing the procedure. Please input your answers into Connect or print a hard copy of the Evaluation worksheet and Work Papers 16-1, 16-2, 16-3, 16-4, 16-5, 16-6, 16-7 to submit unless your instructor requests an electronic submission. The work papers are formatted to fit on one page. CONNECT INPUT mirpul yuur respuriSes Turrure Evaluantur WURSTTEET TU TE Currespuruitiy questuriS TI Connet EARTHWEAR CLOTHIERS Audit Program for Cash For the Year Ended December 31, 2019 General Cash Account 16-1 Initial Here 7/29/2019 Audit Procedure Initial Error or Concern? Working Paper Reference Description of Error or Concern 1 Test the mathematical accuracy of the bank reconciliation working paper and agree the balance per the books to the general ledger. S44 No 16-2 2 Agree the ha Agree the bank balance on the bank reconciliation with the balance shown on the standard bank confirmation Initial Here Please complete the cell to the lef using the drop- down list in the cel Please complete the cell to the let using the drop- down list in the cell Trace the deposits in transit on the bank reconciliation to the cutoff bank statement. Initial Here Compare the outstanding checks on the bank reconciliation working paper with the canceled (or substitute) checks contained in the cutoff bank statement| for proper payee, amount, and endorsement. S.44 No 16-2 Agree any charges included on the cutoff bank statement to the bank reconciliation. Initial Here Please complete the cell to the let using the drop- down list in the cell EARTHWEAR CLOTHIERS Bank Reconciliation December 31, 2019 General Cash Account 16-2 S.44/ Initial Here | 1/12/2020 Balance Per Bank Statement: 16-4 $ 3,705,473 Add: Deposits in Transit 12/28/2019 12/31/2019 $ 523,786 1,508,456 Tick Mark Use the appropriate tick mark for the procedure you are performing (see legend below). 2,032,242 Deduct Outstanding Checks(C)/Wire(W) Transfers: C:57692 C:57693 C:57694 C:57695 C:57696 W:1862 C:57697 357,830 O 223,195 O 87,915 O 219,473 O 428,504 0 539,114 0 22,570 O (1,878,601) 3,859,114 Balance per books, unadjusted Adjustments to books: NSF Check Balance per books, adjusted 5,400 (5,400) $ 3,853,714 2,032,242 Deduct Outstanding Checks(C) / Wire(W) Transfers: C:57692 C:57693 C:57694 C:57695 C:57696 W:1862 C:57697 357,830 0 223,195 0 87,915 0 219,473 0 428,504 O 539,114 O 22,570 0 Tick Mark Use the appropriate tick mark for the procedure you are performing (see legend below). (1,878,601) 3,859,114 Balance per books, unadjusted Adjustments to books: NSF Check Balance per books, adjusted $ 5,400 (5,400) $ 3,853,714 LEGEND F = Footed. C = Traced balance to bank confirmation (16-3). L = Agreed to cash lead schedule and general ledger. 0 = Traced amount to cutoff bank statement (16-4). 0 = Examined canceled check or wire transfer authorization for proper payee, amount, and endorsement. Note: The controller has signed for the return of the cutoff bank statement. 16-3 EARTHWEAR CLOTHIERS Bank Confirmation from First National Bank December 31, 2019 S.44/ Initial Here 1/12/2020 Standard Form to Confirm Account Balance Information with Financial Institutions EarthWear Clothiers CUSTOMER NAME Financial Institution's Name and Address First National Bank P.O.Box 1947 Boise, ID 79943 We have provided to our accountants the following information as of the close of business on December 31, 2019 regarding our deposit and loan balances. Please confirm the accuracy of the information, noting any exceptions to the information provided. If the balances have been left blank, please complete this form by furnishing the balances in the appropriate space below. Although we do not request nor expect you to conduct a comprehensive, detailed search of your records, if during the process of completing this confirmation additional information about other deposit and loan accounts we may have with you comes to your attention, please include such information below. Please use the enclosed envelope to return the form directly to our accountants. 1. At the close of business on the date listed above, our records indicated the following deposit account balance(s): ACCOUNT NAME ACCOUNT NO. INTEREST RATE BALANCE* General Account Payroll Account 04-78925 01-04354 None None $3,705,473 $5,000 2. We were directly liable to the financial institution for loans at the close of business on the date listed above as follows: ACCOUNT NO. DESCRIPTION BALANCE DATE DUE DATE THROUGH WHICH INTEREST IS PAID INTEREST RATE DESCRIPTION OF COLLATERATION 12.2020 (Date) (Customer Authorized Signature) The information presented above by the customer is in agreement with our records. Although we have not conducted a comprehensive, detailed search of our records, no other deposit or loan accounts have come to our attention except as noted below: W Hasher (Financial Institution Authorized Signature) 1/4/2020 (Date) Branch Manager (Title) EXCEPTIONS AND/OR COMMENTS (Title) EXCEPTIONS AND/OR COMMENTS Please Return this form directly to the accountants: Willis and Adams LLP P.O.Box 4080 Boise, ID 79443-4080 *Ordinarily, balances are intentionally left blank if they are not available at the time the form is prepared. Approved 1990 by American Bankers Association, American Institute of Certified Public Accountants, and Bank Administration Institute. Additional forms available from AICPA -- Order Department, P. O. Box 1003, NY, NY 10106-1003. EARTHWEAR CLOTHIERS Cutoff Bank Statement - General Cash Account December 31, 2019 General Cash Account 16-4 S44/ Initial Here 1/12/2020 First National Bank P.O. Box 1947 Boise, ID 79443 Cutoff Bank Statement Statement of account #04-78925 Statement Date: 01/01/2020 - 01/10/2020 EarthWear Clothiers Date Amount Check / Wire # Previous Balance New Balance $3,705,473 1/1/2020 1/2/2020 A W:1862 December Bank charges NSF check Deposit (539,114) (275) (5,400) 523,786 3,166,359 3,166,084 3,160,684 3,684,470 1/3/2020 C:57693 C:57694 Deposit (223,195) (87,915) 1,508,456 A A 3,461,275 3,373,360 4,881,816 1/4/2020 6:57692 (357 830) 4523986 1/1/2020 Previous Balance $3,705,473 1/2/2020 A W:1862 December Bank charges NSF check Deposit (539,114) (275) (5,400) 523,786 3,166,359 3,166,084 3,160,684 3,684,470 1/3/2020 C:57693 C:57694 Deposit (223,195) A (87,915) A 1,508,456 3,461,275 3,373,360 4,881,816 1/4/2020 C:57692 C:57695 Deposit (357,830) A (219,473) A 580,466 4,523,986 4,304,513 4,884,979 1/7/2020 A C:57696 BC W:1864 Deposit (428,504) (275) (105,021) 545,617 4,456,475 4,456,200 4,351,179 4,896,796 1/8/2020 C:57700 Deposit (40,501) 447,453 4,856,295 5,303,748 1/9/2020 C:57699 Deposit (20,536) 1,183,354 5,283,212 6,466,566 1/10/2020 C:57701 C:57702 Deposit (157,206) (134,043) 461,185 6,309,360 6,175,317 6,636,502 1/4/2020 C:57692 C:57695 Deposit (357,830) A (219,473) A 580,466 4,523,986 4,304,513 4,884,979 1/7/2020 C:57696 A BC (428,504) (275) (105,021) 545,617 4,456,475 4,456,200 4,351,179 4,896,796 W:1864 Deposit 1/8/2020 C:57700 Deposit (40,501) 447,453 4,856,295 5,303,748 1/9/2020 C:57699 Deposit (20,536) 1,183,354 5,283,212 6,466,566 1/10/2020 C:57701 C:57702 Deposit (157,206) (134,043) 461,185 6,309,360 6,175,317 6,636,502 1/10/2020 Balance $6,636,502 FS LEGEND F = Footed. S = Scanned and Reviewed. A = Vouched amount to bank reconciliation (16-2). = Vouched amount to proof of cash (16-5). EARTHWEAR CLOTHIERS Cash Audit Procedures Evaluation December 31, 2019 Name: Class or Section: Date: 7/29/2019 Assertion(s) Substantiated (Tested) by the Procedure Errors Detected by Procedure Identify at least one assertion being substantiated. Identify a potential error that this procedure could detect. Audit Procedure Agree the bank balance on the bank reconciliation with the balance shown on the standard bank confirmation. Trace the deposits in transit on the bank reconciliation to the cutoff bank statement. Identify at least one assertion being substantiated. Identify a potential error that this procedure could detect. Agree any charges included on the cutoff bank statement to the bank reconciliation. Identify at least one assertion being substantiated. Identify a potential error that this procedure could detect. Agree the December cash receipts shown on the proof of cash with the December cash receipts journal. Identify at least one assertion being substantiated. Identify a potential error that this procedure could detect. 10 Agree the December cash disbursements shown on the proof of cash with the December cash disbursements journal. Identify at least one assertion being substantiated. Identify a potential error that this procedure could detect. Trace any bank charges or adjustments listed on the proof of cash to the cutoff bank statement Identify at least one assertion being substantiated. Identify a potential error that this procedure could detect. In this mini-case you will audit and evaluate documents such as bank confirmations and bank reconciliations in the audit of one of EarthWear's cash accounts. The company has several other cash accounts at various banks, you will focus on only EarthWear's primary general cash account used mostly for cash receipts and various business expenses. When payments on accounts receivable are collected from customers the cash is deposited, along with any cash from cash sales, in this general account. Steve Alsop, an audit senior for Willis & Adams, CPAs, has completed several of the audit steps in the substantive audit program for the cash account you will examine in this mini-case. There are five audit steps remaining that he has INSTRUCTIONS: Read all steps in the audit program for cash found on Work Paper 16-1 and familiarize yourself with work papers 16-1 through 16-7. Complete steps 2, 3, 5, 9, 10, and 12. Be sure to document your work using the designated tick marks. You will select the correct tick mark from the drop down menu in the highlighted cells on each work paper. The tick mark legend is located at the bottom of each work paper. If you find an error in performing a procedure, select "Error" from the drop down menu. When you have completed each step, document the results Fields you are to complete are colored yellow. The color will disappear as the field is completed. When you are finished with each work paper, enter your initials in the yellow box with title "Initial Here." 14 2 On the worksheet labeled "Evaluation", identify at least one assertion substantiated (tested) by the audit procedures you performed (steps 2, 3, 5, 9, 10, and 12 listed in Work Paper 16-1) and identify what notential errors could be detected by nerforming the nocedure Read all steps in the audit program for cash found on Work Paper 16-1 and familiarize yourself with work papers 16-1 through 16-7. Complete steps 2,3,5, 9, 10, and 12. Be sure to document your work using the designated tick marks. You will select the correct tick mark from the drop down menu in the highlighted cells on each work paper. The tick mark legend is located at the bottom of each work paper. If you find an error in performing a procedure, select "Error" from the drop down menu. When you have completed each step, document the results Fields you are to complete are colored yellow. The color will disappear as the field is completed. When you are finished with each work paper, enter your initials in the yellow box with title "Initial Here." 3. On the worksheet labeled "Evaluation", identify at least one assertion substantiated (tested) by the audit procedures you performed (steps 2, 3, 5, 9, 10, and 12 listed in Work Paper 16-1) and identify what potential errors could be detected by performing the procedure. Please input your answers into Connect or print a hard copy of the Evaluation worksheet and Work Papers 16-1, 16-2, 16-3, 16-4, 16-5, 16-6, 16-7 to submit unless your instructor requests an electronic submission. The work papers are formatted to fit on one page. CONNECT INPUT mirpul yuur respuriSes Turrure Evaluantur WURSTTEET TU TE Currespuruitiy questuriS TI Connet EARTHWEAR CLOTHIERS Audit Program for Cash For the Year Ended December 31, 2019 General Cash Account 16-1 Initial Here 7/29/2019 Audit Procedure Initial Error or Concern? Working Paper Reference Description of Error or Concern 1 Test the mathematical accuracy of the bank reconciliation working paper and agree the balance per the books to the general ledger. S44 No 16-2 2 Agree the ha Agree the bank balance on the bank reconciliation with the balance shown on the standard bank confirmation Initial Here Please complete the cell to the lef using the drop- down list in the cel Please complete the cell to the let using the drop- down list in the cell Trace the deposits in transit on the bank reconciliation to the cutoff bank statement. Initial Here Compare the outstanding checks on the bank reconciliation working paper with the canceled (or substitute) checks contained in the cutoff bank statement| for proper payee, amount, and endorsement. S.44 No 16-2 Agree any charges included on the cutoff bank statement to the bank reconciliation. Initial Here Please complete the cell to the let using the drop- down list in the cell EARTHWEAR CLOTHIERS Bank Reconciliation December 31, 2019 General Cash Account 16-2 S.44/ Initial Here | 1/12/2020 Balance Per Bank Statement: 16-4 $ 3,705,473 Add: Deposits in Transit 12/28/2019 12/31/2019 $ 523,786 1,508,456 Tick Mark Use the appropriate tick mark for the procedure you are performing (see legend below). 2,032,242 Deduct Outstanding Checks(C)/Wire(W) Transfers: C:57692 C:57693 C:57694 C:57695 C:57696 W:1862 C:57697 357,830 O 223,195 O 87,915 O 219,473 O 428,504 0 539,114 0 22,570 O (1,878,601) 3,859,114 Balance per books, unadjusted Adjustments to books: NSF Check Balance per books, adjusted 5,400 (5,400) $ 3,853,714 2,032,242 Deduct Outstanding Checks(C) / Wire(W) Transfers: C:57692 C:57693 C:57694 C:57695 C:57696 W:1862 C:57697 357,830 0 223,195 0 87,915 0 219,473 0 428,504 O 539,114 O 22,570 0 Tick Mark Use the appropriate tick mark for the procedure you are performing (see legend below). (1,878,601) 3,859,114 Balance per books, unadjusted Adjustments to books: NSF Check Balance per books, adjusted $ 5,400 (5,400) $ 3,853,714 LEGEND F = Footed. C = Traced balance to bank confirmation (16-3). L = Agreed to cash lead schedule and general ledger. 0 = Traced amount to cutoff bank statement (16-4). 0 = Examined canceled check or wire transfer authorization for proper payee, amount, and endorsement. Note: The controller has signed for the return of the cutoff bank statement. 16-3 EARTHWEAR CLOTHIERS Bank Confirmation from First National Bank December 31, 2019 S.44/ Initial Here 1/12/2020 Standard Form to Confirm Account Balance Information with Financial Institutions EarthWear Clothiers CUSTOMER NAME Financial Institution's Name and Address First National Bank P.O.Box 1947 Boise, ID 79943 We have provided to our accountants the following information as of the close of business on December 31, 2019 regarding our deposit and loan balances. Please confirm the accuracy of the information, noting any exceptions to the information provided. If the balances have been left blank, please complete this form by furnishing the balances in the appropriate space below. Although we do not request nor expect you to conduct a comprehensive, detailed search of your records, if during the process of completing this confirmation additional information about other deposit and loan accounts we may have with you comes to your attention, please include such information below. Please use the enclosed envelope to return the form directly to our accountants. 1. At the close of business on the date listed above, our records indicated the following deposit account balance(s): ACCOUNT NAME ACCOUNT NO. INTEREST RATE BALANCE* General Account Payroll Account 04-78925 01-04354 None None $3,705,473 $5,000 2. We were directly liable to the financial institution for loans at the close of business on the date listed above as follows: ACCOUNT NO. DESCRIPTION BALANCE DATE DUE DATE THROUGH WHICH INTEREST IS PAID INTEREST RATE DESCRIPTION OF COLLATERATION 12.2020 (Date) (Customer Authorized Signature) The information presented above by the customer is in agreement with our records. Although we have not conducted a comprehensive, detailed search of our records, no other deposit or loan accounts have come to our attention except as noted below: W Hasher (Financial Institution Authorized Signature) 1/4/2020 (Date) Branch Manager (Title) EXCEPTIONS AND/OR COMMENTS (Title) EXCEPTIONS AND/OR COMMENTS Please Return this form directly to the accountants: Willis and Adams LLP P.O.Box 4080 Boise, ID 79443-4080 *Ordinarily, balances are intentionally left blank if they are not available at the time the form is prepared. Approved 1990 by American Bankers Association, American Institute of Certified Public Accountants, and Bank Administration Institute. Additional forms available from AICPA -- Order Department, P. O. Box 1003, NY, NY 10106-1003. EARTHWEAR CLOTHIERS Cutoff Bank Statement - General Cash Account December 31, 2019 General Cash Account 16-4 S44/ Initial Here 1/12/2020 First National Bank P.O. Box 1947 Boise, ID 79443 Cutoff Bank Statement Statement of account #04-78925 Statement Date: 01/01/2020 - 01/10/2020 EarthWear Clothiers Date Amount Check / Wire # Previous Balance New Balance $3,705,473 1/1/2020 1/2/2020 A W:1862 December Bank charges NSF check Deposit (539,114) (275) (5,400) 523,786 3,166,359 3,166,084 3,160,684 3,684,470 1/3/2020 C:57693 C:57694 Deposit (223,195) (87,915) 1,508,456 A A 3,461,275 3,373,360 4,881,816 1/4/2020 6:57692 (357 830) 4523986 1/1/2020 Previous Balance $3,705,473 1/2/2020 A W:1862 December Bank charges NSF check Deposit (539,114) (275) (5,400) 523,786 3,166,359 3,166,084 3,160,684 3,684,470 1/3/2020 C:57693 C:57694 Deposit (223,195) A (87,915) A 1,508,456 3,461,275 3,373,360 4,881,816 1/4/2020 C:57692 C:57695 Deposit (357,830) A (219,473) A 580,466 4,523,986 4,304,513 4,884,979 1/7/2020 A C:57696 BC W:1864 Deposit (428,504) (275) (105,021) 545,617 4,456,475 4,456,200 4,351,179 4,896,796 1/8/2020 C:57700 Deposit (40,501) 447,453 4,856,295 5,303,748 1/9/2020 C:57699 Deposit (20,536) 1,183,354 5,283,212 6,466,566 1/10/2020 C:57701 C:57702 Deposit (157,206) (134,043) 461,185 6,309,360 6,175,317 6,636,502 1/4/2020 C:57692 C:57695 Deposit (357,830) A (219,473) A 580,466 4,523,986 4,304,513 4,884,979 1/7/2020 C:57696 A BC (428,504) (275) (105,021) 545,617 4,456,475 4,456,200 4,351,179 4,896,796 W:1864 Deposit 1/8/2020 C:57700 Deposit (40,501) 447,453 4,856,295 5,303,748 1/9/2020 C:57699 Deposit (20,536) 1,183,354 5,283,212 6,466,566 1/10/2020 C:57701 C:57702 Deposit (157,206) (134,043) 461,185 6,309,360 6,175,317 6,636,502 1/10/2020 Balance $6,636,502 FS LEGEND F = Footed. S = Scanned and Reviewed. A = Vouched amount to bank reconciliation (16-2). = Vouched amount to proof of cash (16-5). EARTHWEAR CLOTHIERS Cash Audit Procedures Evaluation December 31, 2019 Name: Class or Section: Date: 7/29/2019 Assertion(s) Substantiated (Tested) by the Procedure Errors Detected by Procedure Identify at least one assertion being substantiated. Identify a potential error that this procedure could detect. Audit Procedure Agree the bank balance on the bank reconciliation with the balance shown on the standard bank confirmation. Trace the deposits in transit on the bank reconciliation to the cutoff bank statement. Identify at least one assertion being substantiated. Identify a potential error that this procedure could detect. Agree any charges included on the cutoff bank statement to the bank reconciliation. Identify at least one assertion being substantiated. Identify a potential error that this procedure could detect. Agree the December cash receipts shown on the proof of cash with the December cash receipts journal. Identify at least one assertion being substantiated. Identify a potential error that this procedure could detect. 10 Agree the December cash disbursements shown on the proof of cash with the December cash disbursements journal. Identify at least one assertion being substantiated. Identify a potential error that this procedure could detect. Trace any bank charges or adjustments listed on the proof of cash to the cutoff bank statement Identify at least one assertion being substantiated. Identify a potential error that this procedure could detect