Audit 2020 trial balance

file:///C:/Users/Akber019/AppData/Local/Temp/Temp1_Additional_Files.zip/Additional_Files/2019%2010-K.pdf

file:///C:/Users/Akber019/AppData/Local/Temp/Temp1_Additional_Files.zip/Additional_Files/2020_Apollo_Organization_Chart.pdf

file:///C:/Users/Akber019/AppData/Local/Temp/Temp1_Additional_Files.zip/Additional_Files/2020_Apollo_Shoes_Minutes.pdf

Deliverables

• Draft engagement letter
• Staffing Memo
• Review of board minutes
• Materiality Memo

1) List three relevant facts about Apollo Shoes that you think might have an impact on the financial statement audit.

2) Define what is meant by a significant account or disclosure.

3) Identify at least two significant accounts or disclosures from the financial statements of Apollo Shoes. What makes each item significant?

4) Define what is meant by a relevant assertion.

5) Identify at least one relevant assertion for each of the significant accounts or disclosures previously identified from the financial statements of Apollo Shoes. What makes each assertion relevant?

  

Transcribed Image Text:

Instructions Emails A-0 Planning Audit Program A-1 PBC 2019 Trial Balance A- 2019 Tral Balance PBC Apollo Shoes. Inc Trial Balance (Audiled) 31-Dec-19 Account ID Account Descrietion Debe $1,987.28 Single Column format $1.987.28 Credi 10100 Cash on Hand 10200 Regular Checking Account $108.116.52 $0.00 $3.044,958 13 $16,410,902.71 $198,116.52 $0.00 $3.044.958.13 $16.410.90271 10300 Payrol Checking Account 10400 Savings Account 11000 Accounts Receivable 11500 Allowance for Doubtful Accounts 12000 Inventory - Spotight 12300 Reserve for Inventory Obsolescence 14100 Prepaid insurance $1.262.819. A $18.825.200.24 $16.825.205.24 $3.012.000.00) S743.314.34 $200.000.00 $7 406.82 $0.00 $3.012.000.00 $743,314.38 14200 Prepaid Rent 14300 Office Supplies S200,000.00 $7,406.82 14400 Notes Receivable-Current 14700 Other Current Assets S0.00 15000 Land 15100 Buildings and Land Improvements 15200 Machinery. Equipment, Office Furniture 17000 Acoum Depreciation $117,000.00 $623,905.92 $433,217.10 $117,000.00 $623.905.92 $433.217.10 15163 500.00) $163,500.00 19000 Investments 19900 Other Noncurrent Assets 20000 Accounts Payable 23100 Sales Tax Payable 23200 Wages Payable 23300 FICA Employee Withholding 23350 Medicare Withholding 23400 Federal Payrol Taxes Payable 23500 FUTA Tax Payable 23600 State Payrol Taxes Payatie $572,691.06 $53.840.59 $4,633,118.09 $0.00 $29,470.32 $1,318.09 $583.99 $6.033.01 $572.691.08 $53840.59 (S4.633.118.09) $0.00 (S29.470.32) $1.318 60) (S583 99) ($6.033. 01) S0.00 $2.81547) $0.00 $2.815.47 23700 SUTA Tax Payable 23800 FICA Employer Withholding 23900 Medicare Employer Wiholding 24100 Line of Credit 24200 Current Portion Long-Term Debt 24700 Other Current Liabilities 27000 Notes Payable-Nonourent 39003 Common Stock $1.318.69 $583.99 (81.318.69) (S583 99) ($10,000.000.00) $10.000,000.00 S0.00 $0.00 50.00 (58,106.000.00) ST.423.000 00) $2,219.620 65) $246,172.918 44) $4.497.583.20 $1,100,28148 S0.00 $8.105.000.00 $7.423,000.00 $2.219.620.65 $246.172.91844 39004 Paid-in Captal 39005 Retained Eamings 40000 Sales 41000 Sales Returns 42000 Warranty Expense $4.497.583.20 $1,100,281.48 $0.00 $204.302.81 45000 Income from Investments 46000 Interest income (8204,30281) $141,569 221.61 50010 Cost of Goods Sold $141,569,221.61 $4.302,951.46 $897,140.01 57500 Freight $4.302.951.46 60000 Advertising Expense 61000 Auto Expenses 62000 Research and Development 64000 Depreciation Expense 84500 Warehouse Salaries 65000 Property Tax Expense 66000 Legal and Prolessional Expense 67000 Bad Debt Expense 68000 Insurance Expense 70000 Maintenance Expense 70100 Utnes 70110 Phone 70120 Postal 71000 Miscelaneous Office Expense 72000 Payrol Tax Exp 73000 Pension/Profit-Shaning Plan Ex 74000 Rent or Lease Expense 77500 Administrative Wages Expense 78000 Interest Expense 78500 Income Ta Expense -Federal 78510 Income Tax Expense - State B0000 Loss on Legal Settement $897,140.01 S208,974.39 $31.212,334.17 $133,000.00 $4,633,383.82 $80,495.32 $3.605,133.96 $1.622.425.99 $853.942.65 $61,136.04 $135.642.99 $76,373.78 $128,033.21 $17,023.27 $1.550,989.06 $3,000,000.00 $2,603,485,87 $208.974.39 $31,212.334.17 $133.000.00 $4.633.383.82 S80.495.32 $3.605,133.96 $1.622 425.99 $853.942.65 S61.136.04 $135.642.99 S76373.78 $128,033.21 $17.023.27 $1,550.980.o6 $3,000,000.00 $2.603 485.87 $16,875,305.98 $875,000.00 $2.365,000.00 $429,000.00 $19,172.000.00 $16,875.305.9e $875.000.00 $2.365.000.00 $420.000.00 $19.172.000.00 Instructions Emails A-0 Planning Audit Program A-1 PBC 2019 Trial Balance A- 2019 Tral Balance PBC Apollo Shoes. Inc Trial Balance (Audiled) 31-Dec-19 Account ID Account Descrietion Debe $1,987.28 Single Column format $1.987.28 Credi 10100 Cash on Hand 10200 Regular Checking Account $108.116.52 $0.00 $3.044,958 13 $16,410,902.71 $198,116.52 $0.00 $3.044.958.13 $16.410.90271 10300 Payrol Checking Account 10400 Savings Account 11000 Accounts Receivable 11500 Allowance for Doubtful Accounts 12000 Inventory - Spotight 12300 Reserve for Inventory Obsolescence 14100 Prepaid insurance $1.262.819. A $18.825.200.24 $16.825.205.24 $3.012.000.00) S743.314.34 $200.000.00 $7 406.82 $0.00 $3.012.000.00 $743,314.38 14200 Prepaid Rent 14300 Office Supplies S200,000.00 $7,406.82 14400 Notes Receivable-Current 14700 Other Current Assets S0.00 15000 Land 15100 Buildings and Land Improvements 15200 Machinery. Equipment, Office Furniture 17000 Acoum Depreciation $117,000.00 $623,905.92 $433,217.10 $117,000.00 $623.905.92 $433.217.10 15163 500.00) $163,500.00 19000 Investments 19900 Other Noncurrent Assets 20000 Accounts Payable 23100 Sales Tax Payable 23200 Wages Payable 23300 FICA Employee Withholding 23350 Medicare Withholding 23400 Federal Payrol Taxes Payable 23500 FUTA Tax Payable 23600 State Payrol Taxes Payatie $572,691.06 $53.840.59 $4,633,118.09 $0.00 $29,470.32 $1,318.09 $583.99 $6.033.01 $572.691.08 $53840.59 (S4.633.118.09) $0.00 (S29.470.32) $1.318 60) (S583 99) ($6.033. 01) S0.00 $2.81547) $0.00 $2.815.47 23700 SUTA Tax Payable 23800 FICA Employer Withholding 23900 Medicare Employer Wiholding 24100 Line of Credit 24200 Current Portion Long-Term Debt 24700 Other Current Liabilities 27000 Notes Payable-Nonourent 39003 Common Stock $1.318.69 $583.99 (81.318.69) (S583 99) ($10,000.000.00) $10.000,000.00 S0.00 $0.00 50.00 (58,106.000.00) ST.423.000 00) $2,219.620 65) $246,172.918 44) $4.497.583.20 $1,100,28148 S0.00 $8.105.000.00 $7.423,000.00 $2.219.620.65 $246.172.91844 39004 Paid-in Captal 39005 Retained Eamings 40000 Sales 41000 Sales Returns 42000 Warranty Expense $4.497.583.20 $1,100,281.48 $0.00 $204.302.81 45000 Income from Investments 46000 Interest income (8204,30281) $141,569 221.61 50010 Cost of Goods Sold $141,569,221.61 $4.302,951.46 $897,140.01 57500 Freight $4.302.951.46 60000 Advertising Expense 61000 Auto Expenses 62000 Research and Development 64000 Depreciation Expense 84500 Warehouse Salaries 65000 Property Tax Expense 66000 Legal and Prolessional Expense 67000 Bad Debt Expense 68000 Insurance Expense 70000 Maintenance Expense 70100 Utnes 70110 Phone 70120 Postal 71000 Miscelaneous Office Expense 72000 Payrol Tax Exp 73000 Pension/Profit-Shaning Plan Ex 74000 Rent or Lease Expense 77500 Administrative Wages Expense 78000 Interest Expense 78500 Income Ta Expense -Federal 78510 Income Tax Expense - State B0000 Loss on Legal Settement $897,140.01 S208,974.39 $31.212,334.17 $133,000.00 $4,633,383.82 $80,495.32 $3.605,133.96 $1.622.425.99 $853.942.65 $61,136.04 $135.642.99 $76,373.78 $128,033.21 $17,023.27 $1.550,989.06 $3,000,000.00 $2,603,485,87 $208.974.39 $31,212.334.17 $133.000.00 $4.633.383.82 S80.495.32 $3.605,133.96 $1.622 425.99 $853.942.65 S61.136.04 $135.642.99 S76373.78 $128,033.21 $17.023.27 $1,550.980.o6 $3,000,000.00 $2.603 485.87 $16,875,305.98 $875,000.00 $2.365,000.00 $429,000.00 $19,172.000.00 $16,875.305.9e $875.000.00 $2.365.000.00 $420.000.00 $19.172.000.00

Answer rating: 100% (QA)

1 There are the following three facts about Apollo Shoes that can impact the financial statement audit i In Appolo Shoe company it was the failure of ... View the full answer