Please just need help with this assignment

Please just need help with this assignment

ATTACHMENT PREVIEW

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Auditing – Chapters 7& 8
Analytical Procedures Project
Name: ______________________________________
15 points
Required
:The following is a list of revenues and expenses for Ohio Electric Company (OEC), a
provider of electricity to commercial, industrial, and residential customers in Ohio.
The audit of OEC
includes the use of analytical procedures as a method of performing substantive testing on these
accounts.
Identify which accounts you would wish to examine further assuming a materiality of
$5
.
In addition,
please indicate one possible explanation for each unusual fluctuation identified. In other words, you are
simply looking for the accounts that increased or decreased by $5 or more from last year to this year.
Do NOT explain differences in subtotals or totals, just in individual accounts. If you do this right,
you’ll have SIX accounts and explanations for me.
Be creative, give it some thought, in your explanations, make something intelligent up. Notice trends
and relationships, like if one category of revenue goes up and another goes down, what could cause
that? And are the expenses that change related to the revenue at all? There’s not really right or wrong,
but give me something reasonable that could make sense!
Please give this information on a separate page. Web students, upload your saved file in the dropbox
before the posted deadline. Classroom sections, you can upload to the dropbox in your course OR
bring your completed assignment in hard copy to class by the due date.To all classes: If it is late, no
points will be awarded.The assignment must be typed!!
Account
Y/E 12/31/13
Y/E 12/31/12
Revenues:
Sales-residential
$312
$290
Sales-commercial
300
302
Sales-industrial
32
50
Total Sales
644
642
Operating Expenses:
Coal
450
400
Fuel oil
32
50
Depreciation
35
36
Repairs and Maintenance
30
51
Salaries
42
40
Total operating exp.
589
577
Miscellaneous income/(expense)
Rental income
3
0
Scrap sales
6
5
Employee gifts
(14)
(25)
Net Income
$50
$45

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