ACC - Workpaper for Inventory Paper

3) The client includes ONLY PPB & Make Ready in the inventory - You have accepted this as GAAP
4) Your Tolerable Misstatement for the entire inventory is $50,000

a) Complete the Audit Test below
b) Determine the mistatement for the sample selected
c) Determine the estimated misstatement for the entire inventory
d) Present you finding in Workpaper form (which should include your schedule below).
Your findings should include the percent of misstatement for the sample group, the projected misstatement for the entire inventory. The adjusted entry if required. Any legends if required.

1) You have selected the 11 titles of the clients complete inventory which has a book value of $1,875,235.50.

Total
Auditor's
Cost to
Inventory

Make Ready Other

$99,570.27
$104,437.65
$48,540.10
$44,248.26
$41,006.92
$19,912.00
$15,750.00
$30,634.40
$35,000.00
$50,207.43
$39,179.00

2) You have requested & the client has provided copies of these invoices, coded as indicated (PPB, Make Ready, Other, & freight)
(The audit test represents the invoices as provided by the client).