1. Identify high inherent risk assertions for purchases transactions and accounts payable.

2. Evaluate inherent risk for purchase transactions and accounts payable. Explain why you have identified various assertions as high or maximum risk for accounts payable.

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Cash and cash equivalents Accounts receivable Allowance for doubtful accounts. Inventory Investments (derivatives) Deferred income taxes (current) Prepaid expenses and other current assets Property, plant, and equipment Accumulated depreciation Identifiable intangible assets and goodwill Accumulated amortization Deferred income taxes and other assets (noncurrent) Current portion of long-term debt Notes payable Accounts payable Accured liabilities Income taxes payable Long-term debt Deferred income taxes and other liabilities (noncurrent) Common stock at par value Capital stock in excess of par value Unearned stock compensation Accumulated other comprehensive income Beginning retained earnings Dividends Repurchases of common stock Revenue Cost of sales Selling and administrative Interest expense Other expense Income tax expense Totals Cloud 9 Trial Balance October 31, 2022 Debit $ 13,446,154 70,485,625 55,100,000 13,419,231 2,857,692 9,265,385 103,803,846 3,723,007 9,557,692 253,846 5,011,538 3,866,838 4,627,381 169,346,154 79,092,308 1,438,461 453,846 9,511,538 $555,260,542 $ Credit 704,856 39,761,538 2,115,385 21,376,923 14,986,457 25,803,846 2,211,539 23,661,538 4,915,384 111,538 19,415,385 122,857,692 277,338,461 $555,260,542 October 31, 2021 Debit $ 6,123,884 64,867,910 57,900,000 13,805,769 3,584,615 6,446,154 97,576,923 3,851,923 8,410,849 480,769 4,746,154 3,299,423 2,939,393 163,003,846 78,246,154 1,773,077 757,692 9,238,462 $527,052,997 Credit $ 648,679 35,207,692 300,125 34,823,077 22,561,538 24,150,000 3,726,923 17,119,106 4,330,769 107,692 16,484,615 98,150,473 269,442,308 $527,052,997 Cash and cash equivalents Accounts receivable Allowance for doubtful accounts. Inventory Investments (derivatives) Deferred income taxes (current) Prepaid expenses and other current assets Property, plant, and equipment Accumulated depreciation Identifiable intangible assets and goodwill Accumulated amortization Deferred income taxes and other assets (noncurrent) Current portion of long-term debt Notes payable Accounts payable Accured liabilities Income taxes payable Long-term debt Deferred income taxes and other liabilities (noncurrent) Common stock at par value Capital stock in excess of par value Unearned stock compensation Accumulated other comprehensive income Beginning retained earnings Dividends Repurchases of common stock Revenue Cost of sales Selling and administrative Interest expense Other expense Income tax expense Totals Cloud 9 Trial Balance October 31, 2022 Debit $ 13,446,154 70,485,625 55,100,000 13,419,231 2,857,692 9,265,385 103,803,846 3,723,007 9,557,692 253,846 5,011,538 3,866,838 4,627,381 169,346,154 79,092,308 1,438,461 453,846 9,511,538 $555,260,542 $ Credit 704,856 39,761,538 2,115,385 21,376,923 14,986,457 25,803,846 2,211,539 23,661,538 4,915,384 111,538 19,415,385 122,857,692 277,338,461 $555,260,542 October 31, 2021 Debit $ 6,123,884 64,867,910 57,900,000 13,805,769 3,584,615 6,446,154 97,576,923 3,851,923 8,410,849 480,769 4,746,154 3,299,423 2,939,393 163,003,846 78,246,154 1,773,077 757,692 9,238,462 $527,052,997 Credit $ 648,679 35,207,692 300,125 34,823,077 22,561,538 24,150,000 3,726,923 17,119,106 4,330,769 107,692 16,484,615 98,150,473 269,442,308 $527,052,997