Auditing Cases (6th Edition) Case 8.5

Auditing Cases (6th Edition)

Case 8.5

Total Revenue for 2014:

Total Park Attendants | 516,783 people | | | | | |

Total Games | 72 | | | | | |

Weekday Games | 44 | | | | | |

Weekend Games | 28 | | | | | |

Number of Attendants on Weekday Games | 7,178 attendants per game (516,783 attendants / 72 games) | | | | | |

Number of Attendants on Weekend Games | 8,613 attendants per game (7,178 + [7,178*20%]) | | | | | |

Extra Attendance Due to Promotion (Increase by 15%) | | | | | |

Total Attendants on Weekday Games | 267,022 ([7,178*36]+[7178*15%*8) | | | | | |

Total Attendants on Weekend Games | 249,761 attendants (516,783-267,022) | | | | | |

Sales Proposed | Weekdays | Weekend |

Price per seat, $ | Percentage of Mix | Number of Seats | Total Revenue for 267,022 | Percentage of Mix | Number of Seats | Total Revenue for 249,761 |

Club Seats $12 | 25% | 66,755 (267,022*25%) | $801,060 (66,755*$12) | 26% | 64,938 (249,761*26%) | $779,256 (64,938*$12) |

Box Seats $10 | 30% | 80,107 (267,022*30%) | $801,070 (80,107*$10) | 29% | 72,430 (249,761*29%) | $724,300 (72,430*$10) |

General Seats: Adult $6 | 33% | 61,415 (267,022*23%) | $528,702 (88,117*$6) | 24% | 59,943 (249,761*24%) | $359,658 (59,943*$6) |

General Seats: Child (Senior Citizen) $4 | 22% | 58,745 (267,022*22%) | $234,980 (58,745*$4) | 21% | 52,450 (249,761*21%) | $209,800 (52,450*$4) |

Total | | 267,022 | $2,365,812 | | 249,761 | $2,073,014 |

Total Revenue Overall | | | | | | $4,438,826 |

Using the detailed data provided I found out that the total revenue for 2014 will be $4,438,826.

Analytical procedure is the evaluation of financial information through the analysis of credible relationships amid both the financial and nonfinancial data. One reason to use analytical procedures is that it is very cost effective and reasonable effective in identifying accounts that may have unintentional misstatements. Substantive analytical procedures are used...