On 1/18/20, Ellen L. Franklin, Staff Auditor, at Ernst and Olde, CPAs, analyzed her client’s professional fees account (G/L balance of $450k) and completed the work paper below. The client is Zippy Lines Incorporated, and the audit is for the year-ended December 31, 2019. Assume the spreadsheet (shaded portion, except the tick marks) was prepared by the client with the rest of the work paper being completed by Ellen.
As her senior, you are to identify and briefly explain four errors (there are more) in Ellen’s work paper.
Professor’s note: Please use bullets / numbering to clearly separate your responses.
