station 3: auditor (check for mistakes)\ntask: students review a ledger with errors and \audit\…

station 3: auditor (check for mistakes)\ntask: students review a ledger with errors and \audit\ it.\nworksheet example:\nitem revenue expenses balance\nstarting cash $100 - $100\nsales (20 @ $2) $20 - $120\nsupplies - $15 $105\nsales (10 @ $1) $100 - $205\nquestions:\n1. what mistakes do you see in the ledger?\n2. what should the correct balances be?\n3. why is it important for auditors to catch these mistakes?

station 3: auditor (check for mistakes)\ntask: students review a ledger with errors and \audit\ it.\nworksheet example:\nitem revenue expenses balance\nstarting cash $100 - $100\nsales (20 @ $2) $20 - $120\nsupplies - $15 $105\nsales (10 @ $1) $100 - $205\nquestions:\n1. what mistakes do you see in the ledger?\n2. what should the correct balances be?\n3. why is it important for auditors to catch these mistakes?

Answer

Explanation:

Step1: Analyze sales calculation

The first sales of 20 items at $2 each should be $20\times2 = $40, not $20. The second sales of 10 items at $1 each should be $10\times1=$10, not $100.

Step2: Calculate correct balances

Starting cash is $100. After first correct sales ($40), balance is $100 + 40=$140. After supplies expense of $15, balance is $140 - 15 = $125. After second correct sales ($10), balance is $125+10 = $135.

Step3: Explain importance of catching mistakes

Incorrect ledgers can lead to inaccurate financial reporting, mis - allocation of resources, and potential legal and financial consequences for a business. Auditors catching mistakes ensures financial integrity.

Answer:

  1. Mistakes: First sales amount is incorrect ($20 instead of $40), second sales amount is incorrect ($100 instead of $10).
  2. Correct balances: After first sales: $140, after supplies: $125, after second sales: $135.
  3. It is important for auditors to catch these mistakes to ensure financial integrity, accurate reporting, and avoid legal and financial consequences.