You have been charged with reviewing a staff auditor's MUS and related procedures on the audit of SEC public registrant Auto Tire Incorporated of 12/31/2020. The staff auditor, Ima W. Rong, claims to have followed monetary unit sampling and performed accompanying audit procedures plan as documented below. The staff auditor's work appears - below - in a numbered list to facilitate your review and our evaluation of your review.

Following the staff auditor's work (attached), you will find a table that includes a new row for numbered item completed by the staff auditor. For each rowumbered item, you must indicate either

AutoSave ( OH) Document1 . Saved to this PC - Search Eric Maci EM X File Home Insert Design Layout References Mailings Review View Help Foxit PDF Table Design Layout Share Comments item completed by the staff auditor. For each rowumbered item, you must indicate either: "okay, leave the notes as is; OR Both describe and implement, to the extent practicable, any corrections needed, That is, based on your review notes, we will be able to understand both where you think the staff auditor performed poorly and what you believe would correct the staff auditor's shortcomings (so far as you can tell from the work paper documentation provided). When providing corrections, you should show and explain your work. Question: For 44 of 57 sampled units, the units corresponded to a vendor's A/P. I sent each vendor a negative-form confirmation and heard back from 2 vendors, as follows. Supplier Book Value anjen upny Misstatement Commentary Rubber Bale, Inc $500,000 $700,000 ($200,000) AutoTire ordered $200,000 in rubber bales on 12/28/13, and rubber balles arrived on AutoTire shipping dock on 12/31/13 after close of business. AutoTire failed to include in year-end payables. Gerish Brothers $200,000 $300/000 SO GOFF sent back the Fabric Fiber confirmation and said AutoTire (GBFF) owed $300,000, And client management agreed and corrected the books by increasing the amount due to GBFF by $100,000. Since management already has corrected books, I treat this as SO misstatement. Net [5200,000) Misstatement Understatement Is this okay or if not describe and implement, to the extent practicable, any corrections needed Page 1 of 3 460 words CQ Focus - - + 107% OHBORO T 9 P D Desktop 6:56 PM Type here to search 12/16/2020