Certified General Accountants Association

Public Practice Audit Case [BC2]
Marker’s Comment Sheet/Deficiency List

Assignment 5 – Task 10

The purpose of the Comment Sheet/Deficiency List is not to provide answers but to provide guidance on areas for improvement, and to encourage students to review sections where more work was needed to complete the audit file correctly.

Marks breakdown for Assignment 5, Task 10 – Complete the audit

a) Correct amortization adjustment (with supporting schedule) 3 b) Correct FIT adjustment (with supporting schedule 3 c) Completion of subsequent events section of working papers 2 d) Completion of W/P 15-1 and determination of final materiality 1 e) Correct completion of W/P 15-3 (with appropriate cross references) 3 f) Correct audit conclusions on W/P 15-4 1 g) Completion of requirements re client rep letter and management letter 3 h) All journal entries documented and posted correctly 4 i) Quality control review properly completed 2 j) Financial statement disclosure checklist properly completed 2 k) Audit report meets all requirements 3 l) Financial statements proper meet all requirements, including references to notes 4 m) Notes are complete, accurate, and properly worded 4 Total 35

Professional Standards
Errors in any of the key items (k), (l), or (m) (considered as professional standards) can result in failure regardless of the performance on the rest of the tasks.

Task 10 – Complete the audit

a) Correct amortization adjustment (with supporting schedule) (3 marks)

You should have created a new W/P U-1 on which you recalculated the amortization expense and accumulated amortization. You should have proposed the following entry to correct the amortization on W/P U-2:

Dr. 5580 Amortization expense 35,219.24
Cr. 1660 Accumulated