Apollo Shoes, Inc. F-0 AUDIT PLAN—Liabilities FYE 12/31/2020 Materiality for Testing = $126,373 (Listing Scope) Workpaper Reference Related Assertion (s) Performed by Comments Agree current year amounts on liabilities lead schedule to trial balance. Agree prior year amounts to prior year audited financial statements. Foot liabilities lead schedule. Obtain debt confirmations from banks (standard bank confirmation). Review the bank confirmation for loans and collateral. The auditor recognizes that the inventory is listed as collateral on more than one debt item, this should be included in the footnotes to the financial statements. Obtain a listing of all accounts payable as of year end. Foot aged accounts payable schedule. Agree aged accounts payable schedule to lead sheet and trial balance. Review the aged accounts payable schedule for unusual or related party items. Conduct a search for unrecorded liabilities by examining open vouchers, vendors' invoices and statements received, and cash payments made for a period after year-end. Inquire about terms that justify classifying payables as long-term instead of current. Inquire of management about any capital lease agreements entered into during the year. Review agreements/contracts for leases to ensure that they are appropriately classified. Agree lease amounts to the lead sheet and trial balance. Foot the long-term debt amortization table.
Apollo Shoes, Inc. F-0 AUDIT PLAN—Liabilities FYE 12/31/2020 Materiality for Testing = $126,373 (Listing Scope) Workpaper Reference Related Assertion (s) Performed by Comments Agree current year amounts on liabilities lead schedule to trial balance. Agree prior year amounts to prior year audited financial statements. Foot liabilities lead schedule. Obtain debt confirmations from banks (standard bank confirmation). Review the bank confirmation for loans and collateral. The auditor recognizes that the inventory is listed as collateral on more than one debt item, this should be included in the footnotes to the financial statements. Obtain a listing of all accounts payable as of year end. Foot aged accounts payable schedule. Agree aged accounts payable schedule to lead sheet and trial balance. Review the aged accounts payable schedule for unusual or related party items. Conduct a search for unrecorded liabilities by examining open vouchers, vendors' invoices and statements received, and cash payments made for a period after year-end. Inquire about terms that justify classifying payables as long-term instead of current. Inquire of management about any capital lease agreements entered into during the year. Review agreements/contracts for leases to ensure that they are appropriately classified. Agree lease amounts to the lead sheet and trial balance. Foot the long-term debt amortization table.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
| Apollo Shoes, Inc. | F-0 | ||||
| AUDIT PLAN—Liabilities | |||||
| FYE 12/31/2020 | |||||
| Materiality for Testing = $126,373 (Listing Scope) | Workpaper Reference | Related Assertion (s) | Performed by | Comments | |
| Agree current year amounts on liabilities lead schedule to |
|||||
| Agree prior year amounts to prior year audited financial statements. | |||||
| Foot liabilities lead schedule. | |||||
| Obtain debt confirmations from banks (standard bank confirmation). | |||||
| Review the bank confirmation for loans and collateral. | The auditor recognizes that the inventory is listed as collateral on more than one debt item, this should be included in the footnotes to the financial statements. | ||||
| Obtain a listing of all accounts payable as of year end. | |||||
| Foot aged accounts payable schedule. | |||||
| Agree aged accounts payable schedule to lead sheet and trial balance. | |||||
| Review the aged accounts payable schedule for unusual or related party items. | |||||
| Conduct a search for unrecorded liabilities by examining open vouchers, vendors' invoices and statements received, and cash payments made for a period after year-end. | |||||
| Inquire about terms that justify classifying payables as long-term instead of current. | |||||
| Inquire of management about any capital lease agreements entered into during the year. | |||||
| Review agreements/contracts for leases to ensure that they are appropriately classified. | |||||
| Agree lease amounts to the lead sheet and trial balance. | |||||
| Foot the long-term debt amortization table. |
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