Question

Identify specific accounts you would specifically want to spend your audit time on due to higher Risk of Material Misstatement (RMM).  

LIABILITIES AND SHAREHOLDERS’ EQUITY:
Current liabilities:
Accounts payable	$            55,888	$            44,242	$            37,294	15%	12%	11%	26%		19%
Other current liabilities	32,687	30,551	30,110	9%	8%	9%	7%		1%
Deferred revenue	7,543	7,548	8,080	2%	2%	2%	0%		-7%
Commercial paper	11,964	11,977	8,105	3%	3%	2%	0%		48%
Term debt	8,784	6,496	3,500	2%	2%	1%	35%		86%
Total current liabilities	$         116,866	$         100,814	$            87,089	32%	27%	27%	16%		16%
Non-current liabilities:
Deferred revenue	2,797	2,836	2,930	1%	1%	1%	-1%		-3%
Term debt	93,735	97,207	72,427	26%	26%	22%	-4%		34%
Other non-current liabilities	45,180	40,415	36,074	12%	11%	11%	12%		12%
Total non-current liabilities	$         141,712	$         140,458	$         111,431	39%	37%	34%	1%		26%
Total liabilities	$         258,578	$         241,272	$         198,520	71%	64%	61%	7%		22%
Commitments and contingencies
SHAREHOLDER'S EQUITY:
Common stock and additional paid-in capital	$            40,201	$            35,867	$            31,251	11%	10%	10%	12%		15%
Retained earnings	70,400	98,330	96,364	19%	26%	29%	-28%		2%
Accumulated other comprehensive income/(loss)	(3,454)	(150)	634	-1%	0%	0%	2203%		-124%
Total shareholders’ equity	$         107,147	$         134,047	$         128,249	29%	36%	39%	-20%		5%
Total liabilities and shareholders’ equity	$         365,725	$         375,319	$         326,769	100%	100%	100%	-3%		15%

Answer 1