As part of the engagement team for the audit of JA Tire Manufacturing for the year ended December 31, 2019, you are responsible for auditing the revenue cycle. Visit the textbook website My Accounting Lab? to download the data file “JATireSales.xls” provided to your audit firm by the company. The manager has instructed you to read the JA Tire Manufacturing system description provided on the first tab of the Excel file before attempting this assignment to familiarize yourself with the sales process and the relevant worksheets and terminology. This file contains sales transaction information for the year ended December 31, 2019. You will use this data file to perform the following audit procedures. As part of risk assessment procedures, you have been asked to perform some preliminary data analytics on the sales file to assess whether individual transactions or classes of sales transactions represent increased inherent risk because they are large, unusual, or involve related parties. You can perform this analysis using Excel or audit software, such as ACL or IDEA.

a. Identify the five largest sales transactions. Indicate whether you believe these transactions should require an increase in inherent risk. Do you believe any of these transactions individually, or in the aggregate, should be considered a significant risk?

b. Identify any other transactions that appear to involve unusual product numbers, customers, or prices.

c. Customer 1027, New York Tire Depot, is considered a related party to JA Tires. What is the total amount of sales to this customer?