If you selected options "a" or "b" in question 1, assume now that the client has decided that they will make an adjustment of up to $250,000 to their financial statements. Please decompose the total adjustment you would recommend into the individual account classifications included on the Summary of Unadjusted Misstatements in the space provided below (e.g., what adjustment would you require for warranty expense, repair and maintenance expense, etc? The dollar values of your individual account adjustments should sum to no more than $250,000).
If you selected item "c" in question 1, what is the minimum total adjustment that you would require before issuing a clean opinion? $ _______________. Please decompose this total adjustment into the individual account classifications included on the Summary of Unadjusted Misstatements in the space provided below (e.g., what adjustment, if any, would you require for warranty expense, repair and maintenance expense, etc? The dollar values of your individual account adjustments should sum to your required minimum adjustment).

Please briefly explain your decisions:

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Warranty expense Repair and maintenance expense Litigation expense Accounts Receivables /Sales Total