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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
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
Provide 3 substantive audit procedures chosen among the following topi.docx

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Provide 3 substantive audit procedures chosen among the following topi.docx

  • 1. 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
  • 2. 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
  • 3. 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
  • 4. Longterm Debt 410,253 Share Holders Equity Common Shares 80,000 R.E 16,907 Total L + S.E 532,332 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