James Bach is a CPA student working on the confirmations working paper from one of his clients, Dunstan Electric Co. He has so far summarized the results of his testing as shown in figure 9.6.

Required
Help James complete the working paper.

a. Calculate any differences between the general ledger balance and the confirmed balance.

b. For any balance calculated in part (a), determine what would be considered an audit error.

c. For the differences calculated in part (a), identify the additional audit procedures that James should perform.

d. Complete the response recap and determine any extrapolated error. For any error, propose an audit adjustment.

Figure 9.6

Transcribed Image Text:

Accounts receivable confirmation Dunstan Electric Co. Dec. 31, 2020 (c) Additional Procedures Conf. Balance Balance Customer (b) No. Customer per GL Confirmed Difference Response Explanation Error Required Applied Devices 1. 117,383 117,383 2. Выту Маnufacturing 107,084 92,084 Sent cheque for $15,000 Timing difference December 29 3. Brandt Electronics 401,500 401,500 227,047 227,047 4. Groton Elearic Discus sed w ith client, cre dit note processed Jan. 2, so cut-off 5. Jed Ltd. 58,650 53,000 Returned damage d goods December 30 for $5,650 issue. W & M Manufactur ing Examined invoice 6. 199,996 178,920 Overchanged for several items pricing to master price list, recakulated the invoiæs and based on selling prie agreed with sales pricing extensions, de termined the re was an invoice pricing егог. Totak 1,069,934 1,111,660 S Amt. Response recap: No. of Items Value of confirmations mailed Value of confirmations received Summary of results: Na of Items Value of account total 10 1,300,000 Book value of confimation sample Total representative erors Total representative sample Error percent Total population 1,300,000