a. Use the final balances for the prior year and the information in items 1 through…


The final balances from the previous year are used.
You can use items 1 through 5, to calculate an estimated value for each account.
except sales. (Round the closest whole dollar.


The difference between your expectations and actual results is called the
Client’s record amount in percentage by using the formula
(expected value-recorded amount)/expected value. Round to the
nearest hundredth percent, X.XX%.)

Harbor Creek Technologies is your payroll auditor
Company for the year ending October 31, 2016. Below are the results for 2016.
Additions to the client’s trial account and comparative
Audited data from the preceding year

Audited Balance

Preliminary Balance






Executive salaries



Payroll hourly for factories



Salaries for Factory Supervisors



Office salaries



Sales commissions



The following information will assist you in your work
Analytical procedures to determine the accuracy of payroll accounts

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Harbors have seen an increase in popularity.
Creeks products. Both an
An increase of 6 percent in average selling prices and
The increased demand led to an increase in the number of units sold.
Marketing efforts should be intensified.

Despite an increase in sales, there has been no growth in the number of customers.
Executives, supervisors in factories, and office staff.

All employees (including executives), but not commission
Starting at four percent, salespeople were offered a salary raise.
November 1, 2015.

Commission salespeople get their higher compensation
Through the rise in sales.

The increasing number of hourly factory workers was
They did this by recalling those who had been laid off. They
Receive the same wages as current employees. Harbor Creek
Do not allow overtime.

Commission salespeople earn a seven-percent commission on all orders
Sales on which commissions are paid. About 60%
sales earn sales commission. Other 40% are called-ins.
These commissions are not paid. Monthly commissions are paid
Following the month, they will be earned

1. For the Expected Value, find and present work

Executive salaries

Payroll hourly for factories

Salaries for Factory Supervisors

Office salaries

Sales commissions

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