Industrial Solutions Payroll
You are auditing the payroll for Industrial Solutions for the year ended April 30, 2018. Below are the amounts from the client’s trial balance, along with the client’s comparative audited information from the prior year.
Audited Balance 4/30/2017 |
Unaudited Balance 4/30/2018 |
|
Sales |
$ 102,632,468.00 |
$ 114,948,364.00 |
Executive Salaries |
$ 1,093,880.00 |
$ 1,231,940.00 |
Factory hourly payroll |
$ 20,077,754.00 |
$ 22,952,638.00 |
Factory Supervisors salaries |
$ 1,571,650.00 |
$ 1,621,176.00 |
Office Salaries |
$ 3,980,592.00 |
$ 4,110,604.00 |
Sales Commissions |
$ 4,036,298.00 |
$ 4,735,924.00 |
You have obtained the following information to help you perform analytical procedures for the payroll account balances
Required
Perform analytical procedures by answering the questions in Canvas to ascertain whether the 2018 payroll account has been fairly stated.
Calculate your tolerable misstatement using 2% of the client’s reported total payroll expenses.
Answer the following questions based on given information and Round all you answers to the nearest whole number.
Enter your answer with no commas and no decimal places and no dollar sign
Question 1
Develop and expectation for Executive Salaries.
Question 2
Develop and expectation for Factory hourly payroll
Question 3
Develop and expectation for Factory Supervisors' Salaries
Question 4
Develop and expectation for Office Salaries
Question 5
Develop and expectation for Sales Commissions
Question 6
What is the total misstatement?
Question 7
What is the tolerable misstatement?
Question 8
What is your conclusion on the total payroll amount?
Fairly Stated |
Materially Misstated |
Solution:
Given that:
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