Workpaper Index

Section Description

10 Trial Balance
15 Financial Statement Analytics
20 Cash
22 Accounts Receivable
23 Investments
30 Inventory
40 Fixed Assets
50 Accounts Payable
55 Other Current Liabilities
60 Long-Term Liabilities
70 Shareholder's Equity
80 Revenue
85 Expenses
90 Payroll
 Example Company, Inc
Working Trial Balance
As of December 31, 2020
W/P 90-2 Adjusted
"PBC" Adjustments F/S Balance
Dec 31, 2020 Debit Credit 12/31/2020
ASSETS
Current Assets
Checking/Savings
10000 · Cash - Checking 57,000.00 57,000.00
Total Checking/Savings 57,000.00 57,000.00
Accounts Receivable
12000 · Accounts Receivable 60,000.00 60,000.00
Total Accounts Receivable 60,000.00 60,000.00
Other Current Assets
14000 · Inventory 89,000.00 89,000.00
Total Other Current Assets 89,000.00 89,000.00
Total Current Assets 206,000.00 206,000.00
Fixed Assets
15000 · Land 25,000.00 25,000.00
16000 · Building 450,000.00 450,000.00
16500 · Machinery & Equipment 95,000.00 95,000.00
17000 · Accumulated Depreciation (275,000.00) (275,000.00)
Total Fixed Assets 295,000.00 295,000.00
TOTAL ASSETS 501,000.00 - - 501,000.00
LIABILITIES & EQUITY
Liabilities
Current Liabilities
Accounts Payable
21000 · Accounts Payable 70,000.00 70,000.00
Total Accounts Payable 70,000.00 70,000.00
Other Current Liabilities
25000 · Bank Line of Credit 80,000.00 80,000.00
Total Other Current Liabilities 80,000.00 80,000.00
Total Current Liabilities 150,000.00 150,000.00
Long Term Liabilities
28000 · Bank Loan 315,000.00 315,000.00
Total Long Term Liabilities 315,000.00 315,000.00
Total Liabilities 465,000.00 465,000.00
Equity
30000 · Common Stock 1,000.00 1,000.00
31000 · Additional Paid In Capital 9,000.00 9,000.00
32000 · Retained Earnings 26,000.00 26,000.00
Total Equity 36,000.00 36,000.00
TOTAL LIABILITIES & EQUITY 501,000.00 - - 501,000.00
 10-1
Prepared By :

W/P Reference
 Example Company, Inc. WP 55-1
Audit Program - Other Current Liabilities Prepared By :
12/31/2020
Audit Procedures
Test of Account Balances
Step Description Initial W/P Comments
3. Obtain the 12/31/2020 Business Credit Line
Statements

4. Prepare a Summary of Business Line of Credit

balances as of the Balance Sheet date (a) foot
the totals, (b) trace the totals to the general
ledger

5. Determine if any adjustments are required to

the general ledger balance, and prepare
suggested entries for client review

6. Obtain Bank Confirmations and compare

Business Line of Credit amounts with the Bank Confirmations
TH 55-6 match the LOC
Statements received from the Client
Statements

Analytical Procedures
7. Compare Bank LOC balance in the current year
to the prior year and obtain explanations for any No material differences,
significant differences TH N/A increase due to
additional borrowing

Statement Presentation
8. Determine if groupings and classification are
consistent with prior periods TH N/A Yes, Consistent

Conclusion
9 State, in your opinion, if the Bank LOC balance
reported in the fiancial statements is fairly
presented and in accordance with GAAP
 Example Company, Inc.
Bank Line of Credit Lead Sheet
12/31/2020

Account Number & Name 2019 TM 2020 Balance TM Net Adjustments

25000 - Bank Line of Credit 65,000.00 PY

TOTAL
65,000.00 PY - -

Tickmark Legend
Agreed to Trial Balance 10-1
Agreed to Prior Years Workpapers PY
Footed without exception F
 WP 55-2
Prepared By :

2020 Adjusted Balance

-
 Example Company, Inc
Bank Line of Credit Statement Summary
12/31/2020

Bank Line of Credit Statements 2019 Ending Balance 2020 Ending Balance

US Bank (30K Line) 25,000.00 PY

M&T Bank ($100K line) 40,000.00 PY

TOTAL 65,000.00 -
F

Tickmark Legend
Agreed to Prior Years Workpapers PY
Footed without exception F
 WP 55-3
Prepared By :

Workpaper Reference
 Example Company, Inc
Bank Line of Credit Statement
12/31/2020
 WP 55-4
Prepared By :
 Example Company, Inc
Bank Line of Credit Statement
12/31/2020
 WP 55-5
Prepared By :
 Example Company, Inc.
Summary of Misstatements
12/31/2020

Identified
Misstatement
Description of Misstatement W/P Ref Amount
 90-1
Prepared by:

Possible Misstatement - Over (Under)

NonCurrent Income Before Taxes

Current Assets Assets Liabilities Effect
 Example Company, Inc
Proposed Client Journal Entires
12/31/2020

Date Account Debit Credit

 90-2
Prepared by: