Auditing Burlingham Bees
Burlingham Bees 1. AU 329 a. Based on the standards, describe the guidelines for developing an expectation and conducting analytical procedures when those procedures are intended to provide substantive evidence (para. 9-22). i. .09 Reliance on substantive tests: may be derived from tests of detail, from analytical procedures, or from a combination of both. The decision about which procedure to use is based on the auditor’s judgment. ii. .10 Level of assurance: analytical procedure may provide effective level of assurance for some assertions, but some of the assertions may be more effective to reach desired level of assurance by using test of details. iii. .11 Identifying potential misstatement: identifying
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i. Park attendance: park attendance data is reliable because the data is obtained from an independent sources—the 3rd party, Tickets R Us. ii. Number of games: number of games is reliable because the source and condition of the information is public. iii. Per-Game Ticket prices: Ticket price data is reliable because the source and condition of the information is public. iv. Sales mix: Sales mix data is reliable because it has remained fairly constant over the last several years. v. Number of games promotions: Reliable. Data is reliable because the source and condition of the information is public.
c) Develop an expectation using the aggregated data provided.** vi. 2007 ticket revenue is $2.2 million, and 2008 cumulative season attendance is 10%