Apollo Shoes, Inc. what is the related Assertion used for Q.3 B-0
AUDIT PLAN—Preliminary Analytical Procedures
1 Complete engagement materiality memo. Please comment on whether you think materiality seems reasonable and why?
2 Obtain 2019 audited trial balance and 2020 unaudited trial balance. Create Preliminary Analytical Procedures (PreAP) workpaper that calculates absolute and percentage change over the prior year for each line item. ANS:
3 Cross reference all balances on PAP workpaper to TB and foot amounts. ANS:
4 Investigate any percentage change > 10% or over Planning Materiality (see A-5). You will select only three changes to investigate (see step 5). However, this step would be completed in a normal audit.
5 Select three important changes noted on the PreAP, and include them on the deliverable for your senior to review. For each change, specify two hypotheses that could be driving each change. ANS:
Apollo Shoes Case Preliminary Analytical Procedure
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