Planning Simulationit is a quiz time limit 45 minutesBased on the following trial balance (debits positive, credits in brackets), please perform planning analytics and note the itemswhich peak your attention (audit risk) as an auditor- including anything that you do not see here which you expect. In youranswer, please indicate a possible reason for the unexpected fluctuation, or if you know it is an error, state so. Also, please listaccounts and activity as appropriate to support your analysis. Finally, in accordance with SAS 99, present any fraud riskfactors identified.
Your firm is auditing CCure (CC). CC has been working on developing a new drug called “NewYou” which began as a curefor COVID. It has been entirely developed in-house with billions of dollars spent on internal research. No money spent so faris for actual manufacturing or securing intellectual property rights and the drug has not reached a state of approval that meetsthe definition for capitalization under GAAP. CC is very encouraged by recent testing as being completely safe and completelyeffective. CC is all-in on the NewYou drug and they have no other drugs or other sources of revenue.Currently, Ruther Mooch Tanwork is suing CC for $1.5 billion alleging NewYou infringes upon certain intellectual propertyrights held by Ruther. CC asserts that the plaintiff’s case against them has no merit. However, rather than letting defense ofthe lawsuit distract them from research, CC offered and settled the lawsuit for $1.5 million after the balance sheet date butbefore your audit is complete.CC’s investors are becoming very nervous about the massive investment but has been assured by management that the currentyear sales will provide at least $100 million of net income. However, as mentioned above, the FDA has not yet approved thedrug, not even after the end of the year. Also, the debt they have outstanding has no debt reduction requirements until itbecomes due December 31, 2025. It does require interest-only payments at a rate of 7%. Management states that there were nonew borrowings during the year.CC mentioned that they have acquired, this year, a significant amount of equipment to be used in the manufacture of NewYou.The staff will migrate from research activities into development, and accordingly there have been no significant changes to thenumber of employees nor their pay.Based on the following trial balance (debits positive, credits in brackets), please perform planning analytics and note the itemswhich peak your attention (audit risk) as an auditor- including anything that you do not see here which you expect. In youranswer, please indicate a possible reason for the unexpected fluctuation, or if you know it is an error, state so. Also, please listaccounts and activity as appropriate to support your analysis. Finally, in accordance with SAS 99, present any fraud riskfactors identified.Current Prior Dollar %Year Year Change ChangeCash 75,000 23,370,002 (23,295,002) -100%Inventory 250,000 – 250,000 #DIV/0!Prepaid insurance 75,000 15,000 60,000 400%Fixed assets 21,600,000 20,000,000 1,600,000 8%Accumulated deprec. (15,020,000) (15,000,000) (20,000) 0%Reasearch & development asset 325,000,000 228,000,000Accounts payable (210,000) (350,000) 140,000 -40%Debt (None is current) (379,000,000) (380,000,000) 1,000,000 0%Common Stock (1,000,000) (1,000,000) – 0%Ret. Earn. (Accum. Deficit) BOY 124,964,998 40,814,998 84,150,000 206%Revenue (178,270,100) – (178,270,100) #DIV/0!COS 1,250,000 – 1,250,000 #DIV/0!Selling expenses 1,500,000 – 1,500,000 #DIV/0!General & administrative 18,000,000 25,000,000 (7,000,000) -28%Interest expense 57,000,000 57,000,000Insurance expense 500,000 1,500,000 (1,000,000) -67%Depreciation expense 20,000 650,000 (630,000) -97%(23,265,102) –OTHER RELEVANT INFORMATION:Purchase of fixed assets (1,600,000) Borrowings/ repayments of debt noneSale of fixed assets none Non-cash investing & financing none
Get professional assignment help cheaply
Are you busy and do not have time to handle your assignment? Are you scared that your paper will not make the grade? Do you have responsibilities that may hinder you from turning in your assignment on time? Are you tired and can barely handle your assignment? Are your grades inconsistent?
Whichever your reason may is, it is valid! You can get professional academic help from our service at affordable rates. We have a team of professional academic writers who can handle all your assignments.
Our essay writers are graduates with diplomas, bachelor, masters, Ph.D., and doctorate degrees in various subjects. The minimum requirement to be an essay writer with our essay writing service is to have a college diploma. When assigning your order, we match the paper subject with the area of specialization of the writer.
Why choose our academic writing service?
Plagiarism free papers
Timely delivery
Any deadline
Skilled, Experienced Native English Writers
Subject-relevant academic writer
Adherence to paper instructions
Ability to tackle bulk assignments
Reasonable prices
24/7 Customer Support
Get superb grades consistently
Get Professional Assignment Help Cheaply
Are you busy and do not have time to handle your assignment? Are you scared that your paper will not make the grade? Do you have responsibilities that may hinder you from turning in your assignment on time? Are you tired and can barely handle your assignment? Are your grades inconsistent?
Whichever your reason may is, it is valid! You can get professional academic help from our service at affordable rates. We have a team of professional academic writers who can handle all your assignments.
Our essay writers are graduates with diplomas, bachelor’s, masters, Ph.D., and doctorate degrees in various subjects. The minimum requirement to be an essay writer with our essay writing service is to have a college diploma. When assigning your order, we match the paper subject with the area of specialization of the writer.
Why Choose Our Academic Writing Service?
Plagiarism free papers
Timely delivery
Any deadline
Skilled, Experienced Native English Writers
Subject-relevant academic writer
Adherence to paper instructions
Ability to tackle bulk assignments
Reasonable prices
24/7 Customer Support
Get superb grades consistently
How It Works
1. Place an order
You fill all the paper instructions in the order form. Make sure you include all the helpful materials so that our academic writers can deliver the perfect paper. It will also help to eliminate unnecessary revisions.
2. Pay for the order
Proceed to pay for the paper so that it can be assigned to one of our expert academic writers. The paper subject is matched with the writer’s area of specialization.
3. Track the progress
You communicate with the writer and know about the progress of the paper. The client can ask the writer for drafts of the paper. The client can upload extra material and include additional instructions from the lecturer. Receive a paper.
4. Download the paper
The paper is sent to your email and uploaded to your personal account. You also get a plagiarism report attached to your paper.
PLACE THIS ORDER OR A SIMILAR ORDER WITH Essay fount TODAY AND GET AN AMAZING DISCOUNT
The post trial balance discussion appeared first on Essay fount.
What Students Are Saying About Us
.......... Customer ID: 12*** | Rating: ⭐⭐⭐⭐⭐"Honestly, I was afraid to send my paper to you, but you proved you are a trustworthy service. My essay was done in less than a day, and I received a brilliant piece. I didn’t even believe it was my essay at first 🙂 Great job, thank you!"
.......... Customer ID: 11***| Rating: ⭐⭐⭐⭐⭐
"This company is the best there is. They saved me so many times, I cannot even keep count. Now I recommend it to all my friends, and none of them have complained about it. The writers here are excellent."
"Order a custom Paper on Similar Assignment at essayfount.com! No Plagiarism! Enjoy 20% Discount!"
