You will prepare a written memo, detailing your procedures around auditing ticket sales at FSU using a substantive analytical procedure. You should begin your written memo with some general background and then have individual sections of the memo cover each of the below items. Answers to the below questions should be incorporated into your memo, but should not be a bullet point or question and answer list. Consider including tables from your excel work wherever appropriate.

1. Whenever an auditor uses IPE in an audit procedure, the auditor must ensure that the information is reliable. According to auditing standards, when using IPE as audit evidence, what procedures should the auditor evaluate to determine whether the information is sufficient and appropriate for purposes of the audit?
2. Which of the following information from the case would be considered IPE and why?
   1. Schedule of unsold tickets
   2. Bank statement listing cash deposits
   3. Listing of football games played
   4. Recorded ticket sales obtained directly from general ledger
   5. Average number of complimentary tickets provided (clients calculation)

The client provided you with the data files included above (Unsold tickets by game; Season ticket sales revenue; Champions Club ticket revenue; Single game ticket sales, by game; and Issued tickets, by game). When using information for the purposes of performing analytical procedures, data must be cleansed prior to use. Consider the following common issues found in cleansing data and provide documentation of the number of instances of the following. You may also provide documentation of any other data anomalies you find. Remember that some data tables must be used in combination to provide a complete picture of the clients revenue data (V-Lookups are your friend!).

1. Duplicate listings
2. Missing items from a sequence
3. Dates outside of appropriate range
4. Characters in a numeric column

For the purposes of performing the following procedure, you may assume that you have tested the underlying transaction-level data produced by the entity (IPE) and it is sufficiently reliable. Assume that performance materiality has been set at $230,000 for the purpose of this analytical procedure. Prepare and appropriately document an estimate of football ticket revenue using only the summary estimates provided above by the client, as well as the clients summarized single game total tickets issued summary (this information is all provided in the Case Details section above you do not need to refer to the excel files). Use this calculation to test the reported sales revenue of $26,726,864 and answer the following questions:

1. What is your best estimate of 2018 football ticket revenue using the clients average ticket sales and prices provided in the case? Do not use the actual data for this calculation.
2. Based on the performance materiality set, does 2018 football ticket revenue appear to be fairly stated? Why or why not?
3. At what level would you assess the risk of material misstatement related to 2018 football ticket revenue after the performance of your analytical procedure (low, moderate or high)?
4. What additional procedures would you recommend performing related to your audit of football ticket revenue? Think about procedures discussed during our study of Substantive Procedures over revenue and cash.

Perform some exploratory risk analysis on the data provided (in Excel). Identify any areas where you believe there may be some elevated risk after performing your procedures and identify any specific accounts and assertions that may be affected. You may classify and break down the data in any way you deem appropriate for the purposes of risk assessment. Be sure to provide proper documentation of your work. Include answers to the following questions:

1. Does the listing of unissued tickets appear to be complete and accurate?
2. Do you notice any unusual variations in the ratio of online vs. window ticket sales?
3. Do you identify any unusual variations in the number of complimentary tickets issued?
4. Do the patterns of timing of internet ticket sales appear reasonable?
5. Does the pricing of individual game and season tickets appear to be consistent with stated prices?

The schedules provided by the client for this analytical procedure lack many details that might be helpful to an auditor. Consider the columns provided by the client in the excel files. What other information would you expect an auditor to want for the purposes of analyzing the reasonableness of the data provided by the client and performing follow-up procedures? Would other column information have been helpful?