INSTRUCTIONS

Provide 3 substantive audit control weakness, Implications, Recommandations

chosen among the following topics: free meal, lawsuit, inventory, delivery services, payroll or selection of new suppliers. You must provide 3 different procedures on 3 different accounts.

Exhibit 1

Quon Queso Inc. Statement of Earnings For the period ended December 31, 2016
Revenue	547,500
COGS	191,625
Gross Profit	355,875
Expenses
Advertising Expense	27,375
Insurance Expense	2,500
Property Taxes	5,000
General and administrative expenses	16,425
Salary	202,575
Depreciation expense	28,900
EBIT	73,100
Interest expense	13,232
EBT	59,868
Income Tax Expense	17,960
Net Income	41,907