In creating lead schedules for an audit engagement, a CPA often uses automated work paper software. What client information is needed to begin this process?
- Interim financial information such as third quarter sales, net income, and inventory and receivables balances.
- Specialized journal information such as the invoice and purchase order numbers of the last few sales and purchases of the year.
- General ledger information such as account numbers, prior year account balances, and current year unadjusted information.
- Adjusting entry information such as deferrals and accruals, and reclassification journal entries.