80.2K

Verified Solution

Link Copied!

Audit Procedures\ The Audit Plan is your guide to completing the required procedures. Follow each step in the sequence.\ Working Trial Balance\ The client has provided the working trial balance for 2019 and 2020 . You will need to double check the mathematical accuracy of each trial balance by Footing each column and showing the appropriate Tick mark.\ The 2019 Trial Balance must be traced to the Financial Statements included in the 2019 Form 10-K. The financial statements have been provided in a separate file for your convenience. This step verifies that the trial balance is the same one used to prepare the financial statements. Enter cross reference for each trial balance account to the 2019 10-K. See example on workpaper A-1 PBC 2019 Trial Balance.\ You will need to grourtaccounts in a similar manner in order to complete the Materiality workpaper.\ The 2020 Trial Balance does not require cross-reference at this stage.\ Materiality\ The materiality workpaper is similar to the format currently used by public accounting firms. Note the workpaper layout and requirements (like preparer and reviewer sign offs). Your task is to populate the workpaper from the 2019 and 2020 trial balances and attempt to make a decision about materiality based on your limited knowledge.\ Item 2. Asks you to provide justification for the Basis selected. This is your first activity requiring professional judgement and the impact this choice has on the audit.\ Note: Listing scope is a term that refers to the threshold where anything exceeding that amount is suggested as an adjusting journal entry to management.\ Remember to initial the "Prepared By" on workpapers that you prepare and the "Completed BY' in the audit program.

Audit Procedures - The Audit Plan is your guide to completing the required procedures. Follow each step in the sequence. - Working Trial Balance - The client has provided the working trial balance for 2019 and 2020 . You will need to double check the mathematical accuracy of each trial balance by Footing each column and showing the appropriate Tick mark. - The 2019 Trial Balance must be traced to the Financial Statements included in the 2019 Form 10-K. The financial statements have been provided in a separate file for your convenience. This step verifies that the trial balance is the same one used to prepare the financial statements. Enter cross reference for each trial balance account to the 2019 10-K. See example on workpaper A-1 PBC 2019 Trial Balance. - You will need to grouptaccounts in a similar manner in order to complete the Materiality workpaper. - The 2020 Trial Balance does not require cross-reference at this stage. - Materiality - The materiality workpaper is similar to the format currently used by public accounting firms. Note the workpaper layout and requirements (like preparer and reviewer sign offs). Your task is to populate the workpaper from the 2019 and 2020 trial balances and attempt to make a decision about materiality based on your limited knowledge. - Item 2. Asks you to provide justification for the Basis selected. This is your first activity requiring professional judgement and the impact this choice has on the audit. - Note: Listing scope is a term that refers to the threshold where anything exceeding that amount is suggested as an adjusting journal entry to management. - Remember to initial the "Prepared By" on workpapers that you prepare and the 'Completed BY' in the audit program

Answer & Explanation Solved by verified expert

See Answer