BILTRITE BICYCLES INC

MODULE 6 & 7

Oleh kelompok 7:

Muhammad Ulil Albab Nur Farisyi (041711333150)

Taruna Putra Dirgantara (041711333266)
Kavindra Raziq Afif (041811333075)
Carina JesslynTjandraatmadja (041811333085)

Fakultas Ekonomi & Bisnis

Universitas Airlangga
2020
 Module 6

WP 6.4 Prepared by:

BILTRITE BICYCLES, INC. Date:
Inventory Cutoff Reviewed by:
December 31, 2009 Date:

PURCHASES CUTOFF
INVENTORY
DATE RECEIVING INCLUDED
VOUCHER
RECORDED NO. REPORT NO. DATE SHIPPED DATE RECEIVED FREIGHT TERMS EXCLUDED COST

12/31/2009 12456 01-12486 12/27/2009 12/30/2009 FOB destination Included $1,445,900

12/31/2009 12457 01-12487 12/26/2009 12/31/2009 FOB ship. point Included $962,200
1/2/2010 12458 01-12488 12/28/2009 12/31/2009 FOB ship. point Included $488,754
1/3/2010 12459 01-12489 12/29/2009 12/31/2009 FOB ship. point Included $365,400
1/3/2010 12460 02-13001 12/30/2009 1/2/2010 FOB ship. point Excluded $1,879,000 (1)
1/4/2010 12461 02-13002 1/2/2010 1/3/2010 FOB ship. point Excluded $438,870 (2)

(1) Voucher 12460 was for the purchase of raw materials

(2) Voucher 12461 was for the purchase of parts

SALES CUTOFF
INVENTORY
SALES INVOICE DATE DATE FREIGHT INCLUDED
NUMBER SHIPPED RECORDED TERMS SELLING PRICE COST EXCLUDED
33002 12/30/2009 12/30/2009 FOB ship. point $266,800 $205,436 excluded
33003 1/2/2010 12/30/2009 FOB ship. point $881,870 $679,040 included
33004 1/2/2010 12/30/2009 FOB ship. point $443,760 $341,695 included
33005 12/31/2009 12/31/2009 FOB ship. point $144,600 $111,342 excluded
33006 1/2/2010 12/31/2009 FOB ship. point $773,200 $595,364 included
33007 1/3/2010 12/31/2009 FOB ship. point $338,700 $260,799 included
33008 12/31/2009 12/31/2009 FOB ship. point $122,900 $94,633 excluded
33009 1/3/2010 12/31/2009 FOB ship. point $1,322,800 $1,018,556 included
33010 1/4/2010 1/4/2010 FOB ship. point $488,900 $376,453 included
33011 1/4/2010 1/4/2010 FOB ship. point $788,211 $606,922 included

All adjustments of perpetual to physical inventories have been made

through "Cost of Goods Sold."

Examined the following documents for a few days before and after the
balance sheet date to determine that transactions were recorded
in the proper accounting period:
Vouchers
Receiving Reports
Freight Invoices
Sales Invoices
Bills of Lading

All sales are shipped "FOB shipping point."

Examined freight invoices for incoming shipments to locate possible

goods in transit for which title had passed before year-end.
WP 6.4 (cont)
Audit Adjustment 3

5300 Cost of Goods Sold 854,154

2020 Accounts Payable-Trade 854,154
To record vouchers 12458 and 12459 representing
parts inventories received and included in December, 2009
inventory, but not recorded until January, 2010.

Audit Adjustment 4

1310 Raw Materials Inventory 1,879,000

2020 Accounts Payable-Trade 1,879,000
To record inventory in transit at 12/31/09.

Audit Adjustment 5

4100 Sales-Grand Prix Touring Bike 1,230,620

4200 Sales-Phoenix Touring Bike 230,435
4300 Sales-Pike's Peak Mountain Bike 1,937,430
4400 Sales-Himalaya Mountain Bike 253,050
4500 Sales-Waistliner Stationary Bike 108,795
1201 Accounts Receivable-Trade 3,760,330
To reverse the following sales recorded in 2009;
shipped in 2010 (goods were included in 12/31/09 inventory):
Sales Account Number
Invoice Number Amount 4100 4200 4300 4400 4500
33003 $881,870 $322,550 $23,400 $466,740 $32,500 $36,680
33004 $443,760 $77,200 $55,900 $223,060 $87,600 $0
33006 $773,200 $288,700 $0 $410,650 $22,300 $51,550
33007 $338,700 $44,860 $62,375 $122,400 $88,500 $20,565
33009 $1,322,800 $497,310 $88,760 $714,580 $22,150 $0
$3,760,330 $1,230,620 $230,435 $1,937,430 $253,050 $108,795
1.

Cut off error Impact on net income

Dua vouchers 12458 dan 12459 terjadi overstatement of $854,154 (WP

6.4 inventory cut off)
seharusnya masuk kedalam
inventory pada akhir tahun 2009
tetapi tidak dicatat

voucher 12460 menggunakan Fob Tidak memiliki efect apapun pada

shipping point, tetapi barang-barang net income, karena inventorynya
tersebut sebenarnya tidak diterima excluded
sampai 2008

Berdasarkan inovoices yang dicatat Menghasilkan overstatement sebesar

pada penjualan tahun 2009 - 33003,
33004, 33006, 33007, dan 33009.
Tetapi belum dapat dikirim ke
pelanggan hingga 2010, karena
barang akan dikirim di januari 2010
$3,760,330 dan didalamnya juga
ada physical inventories selama
12/31/09.

2. AJE No. 3

5300 Cost of Goods Sold-Pike's Peak $854,154

2020 Accounts Payable $854,154

Untuk menyesuaikan CoGS pada vouchers 12458 dan 12459 representing persediaanyang
diterima diakhir tahun December 31, 2009 physical inventory, tetapi tidak dicatat hingga
January, 2010.

AJE No. 4

1310 Raw Materials Inventory $1,879,000

2020 Accounts Payable $1,879,000

 Untuk menyesuaikan persediaan dalam perjalanan pada 12/31/09.

AJE No. 5

4100 Sales-Grand Prix Touring Bike $1,230,620

4200 Sales-Phoenix Touring Bike $230,435

4300 Sales-Pike's Peak Mountain Bike $1,937,430

4400 Sales-Himalaya Mountain Bike $253,050

4500 Sales-Waistliner Stationary Bike $108,795

1201 Accounts Receivable-Trade $3,760,330

Jurnal pembalik untuk penualan 2010 yang dicatat pada 2009

Sales Account Number

Inv. No. Amount 4100 4200 4300 4400 4500

33003 $881,870 322,500 23,400 446,740 32,500 36,680

33004 443,760 77,200 55,900 223,060 87,600 -0-

33006 773,200 288,700 -0- 410,650 22,300 51,550

33007 338,700 44,860 62,375 122,400 88,500 20,565

33009 1,322,800 497,310 88,760 714,580 22,150 -0-

$3,760,330 1,230,620 230,435 1,937,430 253,050 108,795

Module 7

1. Dalam mencari liabilitas yang tidak tercatat, auditor memperhatikan tujuan audit berikut:

a. Menentukan apakah ada faktur yang diterima dan dijamin pada tahun berikutnya (2010 dalam
audit Biltrite) berlaku untuk tahun yang diaudit (2009);
b. Tentukan apakah klien telah mencatat faktur ini sebagai penyesuaian akhir tahun untuk tahun
yang diaudit;
c. Tentukan apakah faktur tambahan, diterima dan tidak dijamin, adalah untuk biaya yang
berkaitan dengan tahun yang diaudit.
d. Tentukan apakah klien memasukkan biaya ini dalam penyesuaian akhir tahun untuk liabilitas
yang tidak tercatat.
e. Tentukan bahwa biaya berulang lainnya, yang terkait dengan 2009, belum dijamin dan yang
belum menerima faktur, telah dicatat sebagai penyesuaian akhir tahun.

Cheryl Lucas memiliki tujuan yang memuaskan (c) dan (d) dengan memeriksa faktur tahun
2010 yang tidak dijamin dan melacak biaya tahun 2009 yang terkandung di dalamnya hingga
penyesuaian klien 12/31/09 untuk faktur yang tidak tercatat. Namun dia tidak memenuhi tujuan
(a), (b) dan (e). Oleh karena itu, selain prosedur yang tercantum pada WP 15.1, Lucas harus
melakukan hal berikut:

(1) Periksa daftar voucher Januari, 2010 dan faktur yang mendasari untuk setiap biaya material
yang berkaitan dengan 2009.
(2) Lacak setiap biaya yang diidentifikasi dalam (1) di atas untuk penyesuaian Biltrite 12/31/09
untuk liabilitas yang tidak tercatat.
(3) Memeriksa kertas kerja audit 2008 untuk kewajiban akhir tahun berulang yang belum
dipertimbangkan untuk 2009.
 2.

WP 15.1 BILTRITE BICYCLES, INC. Prepared by:

Search for Unrecorded Liabilities Date:
December 31, 2009 Reviewed by:
Date:
INVOICE
VENDOR DATE AMOUNT EXPLANATION
Crown Manufacturing 2/4/2010 $260,000 V Indirect materials shipped and received in January, 2010.
Bluehill and Gilson 2/8/2010 $173,400 V 2009 consulting fees related to employee benefits.
Kryolock Steel Supply 2/3/2010 $420,000 V January purchase of raw materials.
Marion County Treasurer 2/4/2010 $468,000 Vt 2nd half, 2009 real estate taxes
East Texas Power & Light 2/1/2010 $1,322,400 Vt December, 2009 electric bill
Jason & Associates-Freight Auditors 2/9/2010 $196,000 V Charges for auditing 2009 freight bills
Palmer & Nile Advertising 2/4/2010 $460,000 V 4th quarter, 2009 advertising services
Bullseye Parts, Inc. 2/6/2010 $134,800 V January 2010 purchase of repair parts
Archer & Wheel 2/9/2010 $753,420 V New welding equipment purchased in January 2010
MedCare HMO, Inc. 2/9/2010 $288,540 Vt December, 2009 health insurance premiums
for hourly employees
Explanation of Audit Legends:
V Examined invoice
Vt Examined invoice and traced to client's year-end adjustment

Procedures:
Requested all unvouchered invoices as of 2/10/10
Examined above invoices, noting period to which charges apply
Traced 2009 charges to client's 12/31/09 adjustment for unrecorded invoices

Audit Adjustment 6
9452 Other Professional Services $369,400
8340 Advertising Expense $460,000
8310 Sales Commissions $366,900
9431 FICA Tax Expense $94,000
9432 State Unemployment Tax Expense $126,000
9480 Printing and Copying Expense $27,800
9481 Postage Expense $22,300
9460 Supplies Expense $18,600
2020 Accounts Payable $898,100
2051 FICA Payable $94,000
2054 Unemployment and Workers'
Compensation Premiums Payable $126,000
2080 Accrued Commissions Payable $366,900