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ReelWheel_powerpoint_slides1.pptxThe Reel Wheel
Using Analytical Procedures as Substantive Tests of Account Balances
The Reel Wheel
Coliseum Entertainment Corporation is one of the world’s largest hotel and gaming entertainment companies
One of Coliseum’s strategies to increase revenue and income has been to expand entertainment offerings and to encourage increased traffic to the company’s existing hotel and gaming properties
With that strategy in mind, Coliseum constructed a new attraction, the Reel Wheel, which opened on April 1st, 20X4
Case Background
The Reel Wheel is an observation wheel located at a new outdoor mall on the Las Vegas Strip.
The Reel Wheel operates daily, year-round (less 4 service days), from 11:00 a.m. to 2:00 a.m. Operations between 11:00am and 5:00pm are considered “day-time” rides; those between 5:00pm and 2:00am are considered “night-time” rides.
The client’s unaudited reported Ticket Sales Revenue balance for the year 20X5 is $73,468,219.
The amount of tolerable difference allocated to this account is $675,000.
Audit Focus
The engagement audit partner has asked you, a second-year associate with the firm, to oversee the audit of Ticket Sales Revenue generated by the Reel Wheel during the 20X5 calendar year.
The audit partner encourages you to consider using substantive analytical procedures to develop an independent expectation of Ticket Sales Revenue.
Use that estimate as evidence in evaluating the reasonableness of Coliseum’s reported Ticket Sales Revenue for the Reel Wheel’s operations during the year.
Part 1.1: Using Substantive Analytical Procedures
Respond to the following questions, citing relevant standards:
How and in what contexts may substantive analytical procedures be used during the course of the financial statement audit?
Are substantive analytical procedures allowed to be used as audit evidence?
What specific assertions related to the Ticket Sales Revenue account balance could a substantive analytical procedure be used to test?
Does the Ticket Sales Revenue account include “predictable relationships” required to develop an independent expectation?
Why do you think a substantive analytical procedure might be more effective and efficient than tests of details for the Ticket Sales Revenue account?
Part 1.2: Using Substantive Analytical Procedures
What do the auditing standards mean when they refer to the “precision” of an expectation developed with a substantive analytical procedure?
What do the standards suggest that you could do to improve the “precision” of your expectation for Ticket Sales Revenue?
Part 1.3: Using Substantive Analytical Procedures
Does the data provided to you for the purpose of conducting the audit of Reel Wheel’s Ticket Sales Revenue meet the requirements regarding the reliability of underlying data?
How does the source of the information impact its reliability?
Are there external sources that might be used to validate portions of the data provided by the client?
Part 1.4: Using Substantive Analytical Procedures
As indicated in the standards, briefly describe the required steps for documentation of substantive analytical procedures
Part 2.1: Attendance Expectations
Before developing and evaluating a precise analytic, consider a quick “reasonableness test” you could perform.
Develop a quick estimate of the maximum number of passengers possible during 20X5. In other words, how many passengers could ride on the Reel Wheel if every passenger car was filled to capacity for the entire year?
Part 2.1: Attendance Expectations
Note that this represents maximum capacity.
How many passengers would have experienced the Reel Wheel if it ran at 75%, 50%, and 25% of maximum capacity?
Part 2.1: Attendance Expectations
Part 2.2: Ticket Sales Expectation
Using highly aggregated ticket sales data (e.g., total passengers, average ticket price), develop an independent estimate of Ticket Sales Revenue in 20X5 and compare it to the client’s reported balance.
Part 2.2: Ticket Sales Expectation
Using this analytic, one would conclude that the Ticket Sales Revenue account is materially misstated.
What’s wrong with using a highly aggregated analytic like this?
What type of disaggregated information would help the auditor develop a more precise estimate?
Part 2.3: Using Disaggregated Data
Part 2.3: Using Disaggregated Data
Using this analytic with disaggregated data, one would conclude that the Ticket Sales Revenue account is fairly stated.
Parts 3.1-3.2: Reflect on the Engagement
Is the estimate developed in Part 2.3 (the disaggregated estimate) precise enough, or is more precision needed? Explain.
Given that much of the data was provided by the client, what additional audit procedures could you supplement this substantive analytic with to provide additional corroborating evidence that these ticket sales actually occurred?
Consider how your approach to auditing the Ticket Sales Revenue account would be different if a third-party ticket provider with a SOC 1 Type II report were providing these services for the client and was therefore the provider of ticket sales data (e.g. number of passengers, ticket prices, seasonality, daytime vs. nighttime rides, etc.).
Part 3.3: Reflect on the Engagement
Assuming the client’s controls are effective, how might the auditor use data analytics tools to audit the ticket sales revenue account?
How would the evidence obtained using data analytics (i.e., ability to effectively analyze every sales transaction during the year) compare with the evidence from both substantive analytical procedures and tests of details in terms of effectiveness and efficiency?
What additional insights might the auditor be able to identify using data analytics?
Part 3.4: Reflect on the Engagement
Research the AICPA’s website and briefly explain what a SOC 1 Type II report is.
Consider how your approach to auditing the Ticket Sales Revenue account might be different if a third-party ticket provider with a SOC 1 Type II report were providing these services for the client and was therefore the source of the ticket sales data you requested (e.g. number of passengers, ticket prices, seasonality, daytime vs. nighttime rides).
Lessons Learned
Substantive analytical procedures can provide efficient and effective substantive tests when properly designed and when incorporating reliable data.
Analytics developed using disaggregated data provide a more precise expectation compared to analytics that use aggregated data.
RW Ticket Revenue A.01
| Coliseum Entertainment | Workpaper (WP) ID: | A.01 | |||||||
| Substantive Analytical Procedure - Ticket Sales Revenue: The Reel Wheel | Date: | ||||||||
| Year-end Audit: December 31, 20X5 | Prepared By: | ||||||||
| 20X5 Unaudited Account Balance ( | Ticket Sales Revenue | ) | |||||||
| Account | Data Point | Unit Label | Tickmark | WP Reference | |||||
| Ticket Sales Revenue (unaudited) | $ 73,468,219.00 | dollars | PBC | from Trial Balance | |||||
| Allocated tolerable difference | 675,000.00 | dollars | AA.09 | ||||||
| 20X5 Summary Information & Data for "The Reel Wheel" | |||||||||
| Description | Data Point | Unit Label | Tickmark | WP Reference | |||||
| Observation Wheel Height | 550 | feet | PBC, RW | ||||||
| Number of Passenger Cars | 28 | cars | PBC, RW | ||||||
| Interior Space per Car | 225 | square feet | PBC, RW | ||||||
| Maximum Capacity per Car | 40 | passengers | PBC, RW | ||||||
| Time Required for Car Revolution | 30 | minutes | PBC, RW | ||||||
| Hours of Operation (Open) | 11:00am | . | PBC, RW | ||||||
| Hours of Operation (Close) | 2:00am | . | PBC, RW | ||||||
| Description (20X5 calendar year) | Data Point | Unit Label | Tickmark | WP Reference | |||||
| Days in Operation | 361 | days | PBC | ||||||
| Total Passengers | 3,058,452 | passengers | PBC | from A.02 | |||||
| Total Children Passengers | 250,389 | passengers | PBC | A.02, A.03 | |||||
| Description (20X5 calendar year) | Data Point | Unit Label | Tickmark | WP Reference | |||||
| Regular Ticket Price (Child; Age 0 - 12) | $ - 0 | dollars | RW | ||||||
| Regular Ticket Price - Day (Adult; Age 13+) | 24.95 | dollars | RW | ||||||
| Regular Ticket Price - Night (Adult; Age 13+) | 34.95 | dollars | RW | ||||||
| Summer Ticket Price - Day (Adult; Age 13+) | 19.95 | dollars | RW | ||||||
| Summer Ticket Price - Night (Adult; Age 13+) | 29.95 | dollars | RW | ||||||
| WholesaleTicket Price | 12.95 | dollars | PBC | ||||||
| Notes | |||||||||
| • Where noted, data is verified at multiple sources (e.g., PBC, RW). | |||||||||
| • The Reel Wheel sells some tickets to wholesalers – such as third-party travel websites – if booked as part of a travel package that includes a stay at a Coliseum hotel. | |||||||||
| • Although not specifically listed on the RW website, prices for Las Vegas locals (Photo ID required) are 40% off of Regular Adult (Day, Night) prices. No summer discount for locals. | |||||||||
| Tickmark Legend | |||||||||
| PBC | Provided by client (Coliseum Entertainment) | ||||||||
| RW | Sourced from Reel Wheel public website | ||||||||
RW Ticket Revenue A.02
| Coliseum Entertainment | Workpaper (WP) ID: | A.02 | |||||
| Substantive Analytical Procedure - Ticket Sales Revenue: The Reel Wheel | Date: | ||||||
| Year-end Audit: December 31, 20X5 | Prepared By: | ||||||
| 20X5 Ticket Sales Data for "The Reel Wheel" | [Provided by Client] | ||||||
| Total Passengers | Unit Label | Tickmark | WP Reference | ||||
| January | 245,163 | people | PBC | ||||
| February | 228,455 | people | |||||
| March | 261,996 | people | |||||
| Q1 20X5 | 735,614 | people | |||||
| April | 255,898 | people | |||||
| May | 270,268 | people | |||||
| June | 256,758 | people | |||||
| Q2 20X5 | 782,924 | people | |||||
| July | 270,000 | people | |||||
| August | 260,209 | people | |||||
| September | 256,207 | people | |||||
| Q3 20X5 | 786,416 | people | |||||
| October | 273,523 | people | |||||
| November | 246,589 | people | |||||
| December | 233,385 | people | |||||
| Q4 20X5 | 753,497 | people | |||||
| 20X5 Total | 3,058,451 | people | PBC | to A.01 | |||
| Tickmark Legend | |||||||
| PBC | Provided by client (Coliseum Entertainment) |
RW Ticket Revenue A.03
| Colisum Entertainment | Workpaper (WP) ID: | A.03 | |||||||||
| Substantive Analytical Procedure - Ticket Sales Revenue: The Reel Wheel | Date: | ||||||||||
| Year-end Audit: December 31, 20X5 | Prepared By: | ||||||||||
| 20X5 Ticket Sales Mix (%) for "The Reel Wheel" | [Provided by Client] | Tickmark | |||||||||
| PBC | |||||||||||
| Children (0 - 12) | Adults (13+) | Locals | Wholesale | ||||||||
| Day | Night | Day | Night | Day | Night | Day | Night | ||||
| January | 4.2% | 3.3% | 22.4% | 43.8% | 4.5% | 8.7% | 5.2% | 7.9% | |||
| February | 4.7% | 3.1% | 22.8% | 41.6% | 4.9% | 9.4% | 5.0% | 8.5% | |||
| March | 4.1% | 3.3% | 23.1% | 43.6% | 4.0% | 7.8% | 5.8% | 8.3% | |||
| Q1 | 4.3% | 3.2% | 22.8% | 43.0% | 4.5% | 8.6% | 5.3% | 8.2% | 100.0% | ||
| April | 4.3% | 3.8% | 23.9% | 41.2% | 4.7% | 9.0% | 5.1% | 8.0% | |||
| May | 4.6% | 3.0% | 24.1% | 44.2% | 4.3% | 8.9% | 4.2% | 6.7% | |||
| June | 4.9% | 4.3% | 23.6% | 44.7% | 4.6% | 9.3% | 3.7% | 4.9% | |||
| Q2 | 4.6% | 3.7% | 23.9% | 43.4% | 4.5% | 9.1% | 4.3% | 6.5% | 100.0% | ||
| July | 4.9% | 4.0% | 22.2% | 41.2% | 5.2% | 10.4% | 4.9% | 7.2% | |||
| August | 4.9% | 4.1% | 21.6% | 43.3% | 4.8% | 11.0% | 4.4% | 5.9% | |||
| September | 4.1% | 3.4% | 22.9% | 42.6% | 4.6% | 10.4% | 5.3% | 6.7% | |||
| Q3 | 4.6% | 3.8% | 22.2% | 42.4% | 4.9% | 10.6% | 4.9% | 6.6% | 100.0% | ||
| October | 4.5% | 3.7% | 23.1% | 43.2% | 4.1% | 9.7% | 4.9% | 6.8% | |||
| November | 4.5% | 4.1% | 23.7% | 42.9% | 4.0% | 8.8% | 5.0% | 7.0% | |||
| December | 4.3% | 4.1% | 23.0% | 42.5% | 4.2% | 8.4% | 5.4% | 8.1% | |||
| Q4 | 4.4% | 4.0% | 23.3% | 42.9% | 4.1% | 9.0% | 5.1% | 7.3% | 100.0% | PBC | |
| Tickmark Legend | |||||||||||
| PBC | Provided by client (Coliseum Entertainment) |
RW Ticket Revenue A.01
| Coliseum Entertainment | Workpaper (WP) ID: | A.01 | |||||||
| Substantive Analytical Procedure - Ticket Sales Revenue: The Reel Wheel | Date: | 1/25/16 | |||||||
| Year-end Audit: December 31, 2015 | Prepared By: | Stephen Schmidt | |||||||
| 2015 Unaudited Account Balance (Ticket Sales Revenue) | |||||||||
| Account | Data Point | Unit Label | Tickmark | WP Reference | |||||
| Ticket Sales Revenue (unaudited) | $ 73,468,219.00 | dollars | PBC | from Trial Balance | |||||
| Allocated tolerable difference | 675,000.00 | dollars | AA.09 | ||||||
| 2015 Summary Information & Data for "The Reel Wheel" | |||||||||
| Description | Data Point | Unit Label | Tickmark | WP Reference | |||||
| Observation Wheel Height | 550 | feet | PBC, RW | ||||||
| Number of Passenger Cars | 28 | cars | PBC, RW | ||||||
| Interior Space per Car | 225 | square feet | PBC, RW | ||||||
| Maximum Capacity per Car | 40 | passengers | PBC, RW | ||||||
| Time Required for Car Revolution | 30 | minutes | PBC, RW | ||||||
| Hours of Operation (Open) | 11:00am | . | PBC, RW | ||||||
| Hours of Operation (Close) | 2:00am | . | PBC, RW | ||||||
| Description (2015 calendar year) | Data Point | Unit Label | Tickmark | WP Reference | |||||
| Days in Operation | 361 | days | PBC, TT | ||||||
| Total Passengers | 3,058,452 | passengers | TT | from A.02 | |||||
| Total Children Passengers | 250,389 | passengers | TT | A.02, A.03 | |||||
| Description (2015 calendar year) | Data Point | Unit Label | Tickmark | WP Reference | |||||
| Regular Ticket Price (Child; Age 0 - 12) | $ - 0 | dollars | TT, RW | ||||||
| Regular Ticket Price - Day (Adult; Age 13+) | 24.95 | dollars | TT, RW | ||||||
| Regular Ticket Price - Night (Adult; Age 13+) | 34.95 | dollars | TT, RW | ||||||
| Summer Ticket Price - Day (Adult; Age 13+) | 19.95 | dollars | TT, RW | ||||||
| Summer Ticket Price - Night (Adult; Age 13+) | 29.95 | dollars | TT, RW | ||||||
| WholesaleTicket Price | 12.95 | dollars | TT | ||||||
| Notes | |||||||||
| • Where noted, data is verified at multiple sources (e.g., PBC, RW). | |||||||||
| • The Reel Wheel sells some tickets to wholesalers – such as third-party travel websites – if booked as part of a travel package that includes a stay at a Coliseum hotel. | |||||||||
| • Although not specifically listed on the RW website, prices for Las Vegas locals (Photo ID required) are 40% off of Regular Adult (Day, Night) prices. No summer discount for locals. | |||||||||
| Tickmark Legend | |||||||||
| PBC | Provided by client (Coliseum Entertainment) | ||||||||
| RW | Sourced from Reel Wheel public website | ||||||||
| TT | Sourced from Trusted Tickets |
RW Ticket Revenue A.02
| Coliseum Entertainment | Workpaper (WP) ID: | A.02 | |||||
| Substantive Analytical Procedure - Ticket Sales Revenue: The Reel Wheel | Date: | 1/25/16 | |||||
| Year-end Audit: December 31, 2015 | Prepared By: | Stephen Schmidt | |||||
| 2015 Ticket Sales Data for "The Reel Wheel" | [Provided by Trusted Tickets] | ||||||
| Total Passengers | Unit Label | Tickmark | WP Reference | ||||
| January | 245,163 | people | TT | ||||
| February | 228,455 | people | |||||
| March | 261,996 | people | |||||
| Q1 2015 | 735,614 | people | |||||
| April | 255,898 | people | |||||
| May | 270,268 | people | |||||
| June | 256,758 | people | |||||
| Q2 2015 | 782,924 | people | |||||
| July | 270,000 | people | |||||
| August | 260,209 | people | |||||
| September | 256,207 | people | |||||
| Q3 2015 | 786,416 | people | |||||
| October | 273,523 | people | |||||
| November | 246,589 | people | |||||
| December | 233,385 | people | |||||
| Q4 2015 | 753,497 | people | |||||
| 2015 Total | 3,058,451 | people | TT | to A.01 | |||
| Tickmark Legend | |||||||
| TT | Sourced from Trusted Tickets |
RW Ticket Revenue A.03
| Colisum Entertainment | Workpaper (WP) ID: | A.03 | |||||||||
| Substantive Analytical Procedure - Ticket Sales Revenue: The Reel Wheel | Date: | ||||||||||
| Year-end Audit: December 31, 20X5 | Prepared By: | ||||||||||
| 20X5 Ticket Sales Mix (%) for "The Reel Wheel" | [Provided by Client] | Tickmark | |||||||||
| PBC | |||||||||||
| Children (0 - 12) | Adults (13+) | Locals | Wholesale | ||||||||
| Day | Night | Day | Night | Day | Night | Day | Night | ||||
| January | 4.2% | 3.3% | 22.4% | 43.8% | 4.5% | 8.7% | 5.2% | 7.9% | |||
| February | 4.7% | 3.1% | 22.8% | 41.6% | 4.9% | 9.4% | 5.0% | 8.5% | |||
| March | 4.1% | 3.3% | 23.1% | 43.6% | 4.0% | 7.8% | 5.8% | 8.3% | |||
| Q1 | 4.3% | 3.2% | 22.8% | 43.0% | 4.5% | 8.6% | 5.3% | 8.2% | 100.0% | ||
| April | 4.3% | 3.8% | 23.9% | 41.2% | 4.7% | 9.0% | 5.1% | 8.0% | |||
| May | 4.6% | 3.0% | 24.1% | 44.2% | 4.3% | 8.9% | 4.2% | 6.7% | |||
| June | 4.9% | 4.3% | 23.6% | 44.7% | 4.6% | 9.3% | 3.7% | 4.9% | |||
| Q2 | 4.6% | 3.7% | 23.9% | 43.4% | 4.5% | 9.1% | 4.3% | 6.5% | 100.0% | ||
| July | 4.9% | 4.0% | 22.2% | 41.2% | 5.2% | 10.4% | 4.9% | 7.2% | |||
| August | 4.9% | 4.1% | 21.6% | 43.3% | 4.8% | 11.0% | 4.4% | 5.9% | |||
| September | 4.1% | 3.4% | 22.9% | 42.6% | 4.6% | 10.4% | 5.3% | 6.7% | |||
| Q3 | 4.6% | 3.8% | 22.2% | 42.4% | 4.9% | 10.6% | 4.9% | 6.6% | 100.0% | ||
| October | 4.5% | 3.7% | 23.1% | 43.2% | 4.1% | 9.7% | 4.9% | 6.8% | |||
| November | 4.5% | 4.1% | 23.7% | 42.9% | 4.0% | 8.8% | 5.0% | 7.0% | |||
| December | 4.3% | 4.1% | 23.0% | 42.5% | 4.2% | 8.4% | 5.4% | 8.1% | |||
| Q4 | 4.4% | 4.0% | 23.3% | 42.9% | 4.1% | 9.0% | 5.1% | 7.3% | 100.0% | PBC | |
| Tickmark Legend | |||||||||||
| PBC | Provided by Client |
Part 2.1 Solution
| Part 2.1 | In order to better understand whether the reported number of total passengers in 20X5 (as advertised by Coliseum) is reasonable, develop a quick estimate of the maximum number of passengers possible during 20X5. In other words, how many passengers could ride on the Reel Wheel if every passenger car was filled to capacity for the entire year? Given that not every car will be filled to capacity, develop a rough estimate for a “reasonable” number of reported passengers during the year. Does the number of reported passengers seem reasonable? | ||||
| Data Point | Description | Workpaper Reference | |||
| 15 | hours / day | A.01 | |||
| 28 | cars available | A.01 | |||
| 0.5 | hours to revolve / car | A.01 | |||
| 840 | total car revolutions / day | ||||
| 361 | days in operation / year | ||||
| 303,240 | total car revolutions / year | ||||
| 40 | maximum passengers / car | A.01 | |||
| 12,129,600 | maximum passengers / year | ||||
| Notes: | |||||
| Although more than 12 million passengers could - in theory - ride on the Reel Wheel during a calendar year, the actual number of riders is most likely a small fraction of that number (as shown below using arbitrary estimates). | |||||
| Data Point | Description | Workpaper Reference | |||
| 75% | percent of cars w/ passengers | ||||
| 35% | average car capacity | ||||
| 3,184,020 | estimated number of passengers | ||||
| Note: | |||||
| The esimated number of passengers is conditional on the arbitrary estimates of the percentage of cars with passengers and the average car capacity. As these variables change, the estimated number of passengers may change significantly. | |||||
Part 2.2 Solution
| Part 2.2 | Develop an independent estimate of Ticket Sales Revenue using highly-aggregated data (e.g., Total Number of Paying Passengers, Average Ticket Price). Evaluate this independent estimate by comparing it to the client's reported account balance. Determine if the reported balance is within a tolerable range of your independent estimate using this aggregated data approach. | |||||
| Data Point | Description | Workpaper Reference | ||||
| 3,058,452 | Total number of passengers | A.01 | ||||
| (250,389) | Total children passengers | A.01 | ||||
| 2,808,063 | Total paying passengers | |||||
| Data Point | Description | Workpaper Reference | ||||
| $ 24.95 | Regular Ticket - Day / Adult | A.01 | ||||
| $ 34.95 | Regular Ticket - Night / Adult | A.01 | ||||
| $ 19.95 | Summer Ticket - Day / Adult | A.01 | ||||
| $ 29.95 | Summer Ticket - Night / Adult | A.01 | ||||
| $ 12.95 | Wholesale Ticket | A.01 | ||||
| $ 24.55 | Average Ticket Price | |||||
| $ 68,937,946.65 | Total (Paying Passengers * Avg. Ticket Price) | |||||
| 73,468,219.00 | Unaudited Account Balance ( | PBC | ) | A.01 | ||
| (4,530,272.35) | Observed Difference | |||||
| 675,000.00 | Tolerable Differences | A.01 | ||||
| No | Is |Observed Difference| < Tolerable Difference? | |||||
| Notes: | ||||||
| Based on this independent estimate, which is based on highly-aggregated passenger data and with a rudimentary average of available ticket prices, the client's unaudited Ticket Sales Revenue appers to be overstated by an amount greater than the tolerable difference. Based on this analytic, it appears that the account is materially overstated. Recommend substantive tests of transaction details by sampling daily sales receipts, deposits, and ledger entries. | ||||||
Part 2.3 Solution
| Part 2.3 | Using the disaggregated data available to you, develop an audit work paper to report a more precise estimate for Ticket Sales Revenue in 20X5 at the Reel Wheel. Compare your revised estimate using disaggregated data with the client’s reported account balance and determine (1) whether or not the client’s amount appears to be materially misstated and (2) what, if any, additional audit work is required to test the account balance. | ||||||||||||||||||||||||
| Colisum Entertainment | Workpaper (WP) ID: | A.04 | |||||||||||||||||||||||
| Substantive Analytical Procedure - Ticket Sales Revenue: The Reel Wheel | Date: | ||||||||||||||||||||||||
| Year-end Audit: December 31, 20X5 | Prepared By: | ||||||||||||||||||||||||
| Stage 1: Documentation of Independent Expectation (PCAOB AS 2305.22.a) | |||||||||||||||||||||||||
| Children (0 - 12) | Adults (13+) | Locals (40% Off of Regular) | Wholesale | Quarterly Totals | |||||||||||||||||||||
| Number of Passengers | Day | Price | Night | Price | Revenue | Day | Price | Night | Price | Revenue | Day | Price | Night | Price | Revenue | Day | Price | Night | Price | Revenue | |||||
| January | 245,163 | 4.2% | $0 | 3.3% | $0 | $ - 0 | 22.4% | $ 24.95 | 43.8% | $ 34.95 | $ 5,123,146.69 | 4.5% | $ 14.97 | 8.7% | $ 20.97 | $ 612,426.98 | 5.2% | $ 12.95 | 7.9% | $ 12.95 | $ 415,906.77 | ||||
| February | 228,455 | 4.7% | $0 | 3.1% | $0 | - 0 | 22.8% | 24.95 | 41.6% | 34.95 | 4,621,142.05 | 4.9% | 14.97 | 9.4% | 20.97 | 617,904.52 | 5.0% | 12.95 | 8.5% | 12.95 | 399,396.45 | ||||
| March | 261,996 | 4.1% | $0 | 3.3% | $0 | - 0 | 23.1% | 24.95 | 43.6% | 34.95 | 5,502,348.29 | 4.0% | 14.97 | 7.8% | 20.97 | 585,419.58 | 5.8% | 12.95 | 8.3% | 12.95 | 478,391.60 | ||||
| Q1 | 735,614 | - 0 | 15,246,637.04 | 1,815,751.09 | 1,293,694.82 | $ 18,356,082.94 | |||||||||||||||||||
| April | 255,898 | 4.3% | $0 | 3.8% | $0 | - 0 | 23.9% | 24.95 | 41.2% | 34.95 | 5,210,710.23 | 4.7% | 14.97 | 9.0% | 20.97 | 663,003.57 | 5.1% | 12.95 | 8.0% | 12.95 | 434,118.16 | ||||
| May | 270,268 | 4.6% | $0 | 3.0% | $0 | - 0 | 24.1% | 24.95 | 44.2% | 34.95 | 5,800,181.01 | 4.3% | 14.97 | 8.9% | 20.97 | 678,383.49 | 4.2% | 12.95 | 6.7% | 12.95 | 381,496.80 | ||||
| June | 256,758 | 4.9% | $0 | 4.3% | $0 | - 0 | 23.6% | 24.95 | 44.7% | 34.95 | 5,523,082.82 | 4.6% | 14.97 | 9.3% | 20.97 | 677,540.71 | 3.7% | 12.95 | 4.9% | 12.95 | 285,951.38 | ||||
| Q2 | 782,924 | - 0 | 16,533,974.06 | 2,018,927.77 | 1,101,566.34 | 19,654,468.18 | |||||||||||||||||||
| July | 270,000 | 4.9% | $0 | 4.0% | $0 | - 0 | 22.2% | 19.95 | 41.2% | 29.95 | 4,527,441.00 | 5.2% | 14.97 | 10.4% | 20.97 | 799,016.40 | 4.9% | 12.95 | 7.2% | 12.95 | 423,076.50 | ||||
| August | 260,209 | 4.9% | $0 | 4.1% | $0 | - 0 | 21.6% | 19.95 | 43.3% | 29.95 | 4,495,774.01 | 4.8% | 14.97 | 11.0% | 20.97 | 787,199.88 | 4.4% | 12.95 | 5.9% | 12.95 | 347,079.77 | ||||
| September | 256,207 | 4.1% | $0 | 3.4% | $0 | - 0 | 22.9% | 19.95 | 42.6% | 29.95 | 4,439,362.74 | 4.6% | 14.97 | 10.4% | 20.97 | 735,185.99 | 5.3% | 12.95 | 6.7% | 12.95 | 398,145.68 | ||||
| Q3 | 786,416 | - 0 | 13,462,577.75 | 2,321,402.27 | 1,168,301.95 | 16,952,281.97 | |||||||||||||||||||
| October | 273,523 | 4.5% | $0 | 3.7% | $0 | - 0 | 23.1% | 24.95 | 43.2% | 34.95 | 5,706,195.80 | 4.1% | 14.97 | 9.7% | 20.97 | 724,250.61 | 4.9% | 12.95 | 6.8% | 12.95 | 414,428.37 | ||||
| November | 246,589 | 4.5% | $0 | 4.1% | $0 | - 0 | 23.7% | 24.95 | 42.9% | 34.95 | 5,155,362.25 | 4.0% | 14.97 | 8.8% | 20.97 | 602,702.97 | 5.0% | 12.95 | 7.0% | 12.95 | 383,199.31 | ||||
| December | 233,385 | 4.3% | $0 | 4.1% | $0 | - 0 | 23.0% | 24.95 | 42.5% | 34.95 | 4,805,922.27 | 4.2% | 14.97 | 8.4% | 20.97 | 557,841.49 | 5.4% | 12.95 | 8.1% | 12.95 | 408,015.33 | ||||
| Q4 | 753,497 | - 0 | 15,667,480.31 | 1,884,795.08 | 1,205,643.01 | 18,757,918.39 | |||||||||||||||||||
| 20X5 Annual Totals | 3,058,451 | - 0 | $ 60,910,669.16 | $ 8,040,876.20 | $ 4,769,206.12 | $ 73,720,751.48 | |||||||||||||||||||
| A.02 | A.03 | A.01 | A.03 | A.01 | A.03 | A.01 | A.03 | A.01 | A.03 | A.01 | A.03 | A.01 | A.03 | A.01 | A.03 | A.01 | |||||||||
| Stage 2: Compare Expectation to Unaudited Account Balance (PCAOB AS 2305.22.b) | |||||||||||||||||||||||||
| Unaudited Account Balance ( | PBC | ) | A.01 | 73,468,219.00 | |||||||||||||||||||||
| Observed Difference | 252,532.48 | ||||||||||||||||||||||||
| Tolerable Difference | A.01 | 675,000.00 | |||||||||||||||||||||||
| Is |Observed Difference| < Tolerable Difference? | Yes | ||||||||||||||||||||||||
| If Observed Difference is less than Tolerable Difference, then analytic supports unaudited amount. | |||||||||||||||||||||||||
| Stage 3: Prescribe Additional Audit Procedures (PCAOB AS 2305.22.c) | |||||||||||||||||||||||||
| The independent estimated developed from the analytical procedure - which was designed with sufficient precision to provide reasonable assurance regarding this estimate - supports the client's reported Ticket Sales Revenue account balance. Because much of the data underlying the analytic was provided by the client, recommend additional substantive testing of cash/credit-card receipts to provide additional corroborative evidence regarding the occurrence of transactions. | |||||||||||||||||||||||||
