Pengxiang Zhang Acct 411 auditing HW5 26.

The working trial balance is a schedule listing the balances of accounts in the general ledger of the current and previous year, with columns for adjusting entries, reclassification entries, and the financial statement amounts. Final figures from the prior year s audit may be compared with the current year. 27. Yes, auditors should obtain sufficient appropriate audit evidence to reduce audit risk to a low level in every audit. The auditors should propose an adjusting journal entry for all material related-party transactions. 43. a, 3 b, 4 c, 1 d, 2 e, 3 f, 2 g, 3 h, 3 I, 4 J, 1 K,2 L,1 44. a, 3 B, 4 C, 1 D, 2 E, 6 F, 5 G, 7,8 H, 8,9 I, 8,9 J, 7,8 K, 7,10 46. a,1 B, 3 C,3 D,1 E,3 54. 1, on the cost of goods sold item, it is very higher than the prior two years on 12/31/x8. 2. 12/31/x8 year got a very high Days sales in ending inventory ratios. Their inventory is even higher that the total of the past two years.