your firm has been engaged too audit the financial statement of art and company (A&C) for the year ended December 31,2020. On jun 1 , 2020 A&C Started a product warranty program to remain competitive with other companies in the industry. the warranty covers parts, lobour and shipping to repair any defects within one year of purchase.

during 2020,A&C paid 50000 of warranty costs on product sales of 4000000 ( approximately 80000 units). using this data, management estimates warranty liability at December 31 is 80000

A.For each assertion, identify evidance- gathering procedures that your firm would perform to provide sufficient appropriate evidance to support or refute the assertions for the warranty liability account