Regina Corp. Audit Program Client Name Working Paper Title Balance Sheet Date Prepared By Client? Working Paper # Preparer Date Completed Reviewer Date Reviewed Step 1. Read the case study Regina Corp. Step 2. Complete the income statement trend analysis workpaper EX-1-1 by computing the $ change and % change columns. Step 3. Complete the balance sheet trend analysis workpaper EX-1-2 by computing $ change and % change columns. Step 4. Complete the ratio analysis workpaper EX-1-3. Step 5. Sales returns and allowances were $2,284, $5,270 and $2,644 for 1986, 1987 and 1988, respectively. Prepare an analysis of the sales / receivable cycle accounts (sales, accounts receivable, sales returns). Document your observations identifying possible misstatements on workpaper EX-1. Consider audit objectives that could be at risk. Step 6. Prepare an analysis of the cost of goods sold / inventory accounts. Document your observations and identify possible misstatements on workpaper EX-1. Consider audit objectives that could be at risk. Step 7. Prepare an analysis of accounts payable and accrued liabilities. Document your observations and identify possible misstatements on workpaper EX-1. Consider audit objectives that could be at risk. EX-1-1 Client Name Working Paper Title Balance Sheet Date Prepared By Client? Working Paper # Preparer Date Completed Reviewer Date Reviewed Objective To analyze changes in account balances and other related metrics in order to identify areas that may represent specific risks relevant to the audit. Results of Procedures and Evidence Obtained Trend Analysis Prior year $ Change % Change Sales Cost of goods sold Gross margin Gross margin as a % of sales Selling, dist, adm Advertising Reasearch & development Operating income Interest expense Income tax expense Net income Current year 181,123 94,934 86, 189 47.60% 21,870 39,992 2,423 21,904 3,189 7,761 10,954 128,234 70,756 57,478 44.80% 14,621 26,449 1,530 14,878 1,584 6,189 7,105 Tickmark Legend Calculation checked and agreed FS Agreed to financial statements PY Agreed to prior-year's working papers Conclusion See conclusion at WP EX