Requirements: Determing the effect of the errors to the following:1. 20x2 net income2. 20x3 net income3. 20x4 net income4. 20x4 retained earnings, beginning5. 20x4 retained earnings, ending6. 20x4 working capital Problem 2: (Concepts in Correction of errors) You have been engaged to audit the accounts of ABC Company for the first timein 20x4. During the audit you discovered the following information.Year ending December 31Omission of:Accrued expensesAccrued income20X220X320X4P15,0008,00016,00011,0001,0002,0001,500P7,0009,00012,00013,000P22,0005,0006,00010,000ab.Prepaid expensesd.с.Unearned incomeBeginning inventoryf.е.Ending inventoryBad debt expensesg.Cash dividend payableRequirements: Determine the effect of the errors to:h.5001.20X2 Net Income2.20X3 Net Income3.20X4 Net Income20X4 Retained Earnings, Beginning20X4 Retained Earnings, Ending+. 20X4 Working Capital4.5.

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Description: Requirements: Determing the effect of the errors to the following:1. 20x2 net income2. 20x3 net income3. 20x4 net income4. 20x4 retained earnings, beginning5. 20x4 retained earnings, ending6. 20x4 working capital Problem 2: (Concepts in Correction of

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1. 20x2 net income 2. 20x3 net income 3. 20x4 net income

Auditing: A Risk Based-Approach to Conducting a Quality Audit

10th Edition

ISBN:9781305080577

Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Publisher:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Chapter16: Advanced Topics Concerning Complex Auditing Judgments

Section: Chapter Questions

Problem 36RSCQ

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You auditing Adel Corp's various liability accounts. The following schedule of liabilities was presented to you by the company's accountant in relation to your audit Accounts payable P460,000 Accrued expenses 29,400 Warranties payable 153,250 Salaries payable 268,500 10%, Note payable - bank 2,000,000 Audit Notes: Continuation in the pictures What is the correct balance of the accrued expenses account?
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You auditing Adel Corp's various liability accounts. The following schedule of liabilities was presented to you by the company's accountant in relation to your audit Accounts payable P460,000 Accrued expenses 29,400 Warranties payable 153,250 Salaries payable 268,500 10%, Note payable - bank 2,000,000 AuditNotes : Continuation in the pictures * What is the correct balance of the salaries payable in the form of liability for compensated absences as of December 31, 2018?
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