Waren Sports Supply Year End Audit Program Audit Procedure Workpaper Reference Performed by Date General Audit Procedures: Familiarize yourself with the clients industry, accounting systems, and policies by reviewing the company information included in the permanent file and the internal

Waren Sports Supply

Year End Audit Program

Audit Procedure	Workpaper Reference	Performed by	Date
General Audit Procedures: Familiarize yourself with the client’s industry, accounting systems, and policies by reviewing the company information included in the permanent file and the internal control workpapers. Import client data from the prior year and current year into the working trial balance. Agree all items in the working trial balance to the Client’s general ledger Substantive Audit Procedures: Obtain a copy of the client’s year-end bank reconciliation. Request a standard bank confirmation. Obtain subsequent bank statement. Prove clerical accuracy of reconciliation. Perform audit procedures as deemed necessary. Trace ending balance to working trial balanc Obtain a copy of the client’s aged trial balance of accounts receivable. Prove clerical accuracy. Obtain confirmation of account balance for 1 customer. Ascertain that accounts are aged properly by reference to supporting documentation. Compute accounts receivable turnover for the year and compare to prior year for reasonableness. Trace total to the working trial balanc Obtain a copy of the client’s fixed assets trial balance. Prove clerical accuracy. Vouch totals to the property ledgers Evaluate reasonableness of depreciation expense by comparing to prior year. Trace totals to the working trial balance. Obtain a copy of the client’s accounts payable trial balance. Prove clerical accuracy Vouch vendor totals to subsidiary ledger Trace total to the working trial balance. Obtain a copy of the client’s inventory listing. Prove clerical accuracy For 1 inventory item (BB-538) trace the unit cost to the supporting invoice. Trace inventory test counts to the final inventory listing. Compute inventory turnover for the year and compare to prior year for reasonableness. Trace total to the working trial balance 8. Obtain an analysis of notes payable. a. Confirm balance. b. Determine reasonableness of interest expense and accrued interest c. Trace ending balances to the working trial balance. Wrap Up Audit Procedures: 10. Agree all F/S amounts with the supporting working trial balance 11. Ascertain that the working trial balance does in fact balance 12. Prepare a schedule of proposed audit adjustments. 13. Prepare a draft of footnote 1, Accounting Policies 14. Prepare a summary memorandum documenting your audit conclusions, including the type of audit report you would expect to issue.