Provide 3 substantive audit procedures chosen among the following topics: free meal, lawsuit, inventory, delivery services, payroll or selection of new suppliers. You must provide 3 different procedures on 3 different accounts. Exhibit 1 Quon Queso Inc. Statement of Earnings For the period ended December 31, 2016 Revenue 547,500 COGS 191,625 Gross Profit 355,875 Expenses Advertising Expense 27,375 Insurance Expense 2,500 Property Taxes 5,000 General and administrative expenses 16,425 Salary 202,575 Depreciation expense 28,900 EBIT 73,100 Interest expense 13,232 EBT 59,868 Income Tax Expense 17,960 Net Income 41,907 Quon Queso Inc. Statement of Retained Earnings For the period ended December 31, 2016 Balance, December 31, 2015 0 Net profit 41,907 Dividends 25,000 Balance, December 31, 2016 16,907 Exhibit 1 (continued) Quon Queso Inc. Balance Sheet As at December 31, 2016 Assets Current Cash 11,232 Inventory 20,000 Non-Current Bulding, net 393,100 Equipment, net 108,000 Total 532,332 Liabilities Current Accounts payable 5,000 Short-term debt 20,171 Non-current Longterm Debt 410,253 Share Holders Equity Common Shares 80,000 R.E 16,907 Total L + S.E 532,332 .