Objective: Develop audit documentation skills, calculate materiality and apply professional judgement.
Review the following client source documents:
Access the following workpaper spreadsheet with audit program and workpapers:
- Check the PBC Trial Balance for accuracy.
- Trace the prior period Trial Balance to the prior period 10-K.
- Prepare the Materiality workpaper.
- Transfer items deemed significant to the audit to A-3 from Planning Part I
- Signoff on A-0 Audit Planning Program
- Review all posted materials related to the case.
- Review the instructions, audit program, and workpaper
- Trace (tie out) 12/31/2019 trial balance amounts to 2019 10-K. Some of the balances will need to be aggregated to tie out to financial reporting format (for example – cash). If the balance agrees to the 2019 10-K, document A-1 with A-3 (10-K)
- Foot (add up) the 12/31/2020 trial balance, aggregate total assets, liabilities, equity, revenue, expenses, and compute unadjusted net income. Document at the bottom of the trial balance workpaper (A-2). Use MS Excel functions to sum accounting elements.
- Prepare materiality workpaper (A-5).
- Sign-off on audit procedures performed on A-0 as preparer and reviewer with your initials.
REMINDER – one submission per audit team DUE Monday, February 14th by 11:59 p.m. in Canvas