AUDIT CASE (BASE R, v23) -- STUDENT PACKAGE -- YEAR 2025
Generated: 2026-06-10

Client: Delgado and Castillo Ltd.
Address: 8910 Northstar Street, Suite 310, Breaux Bridge, LA

FOLDER LAYOUT (files are organised by audit area)
 00_Start_Here            chart of accounts, PBC request list, getting-started materials
 01_Financial_Statements  this-year + comparative + prior-year FS PDFs, cash-flow & retained-earnings statements
 02_General_Ledger_and_JEs  JV lines, opening/ending trial balances, tie-out report, RECONCILIATION CHECKLIST, workbooks
 03_Payroll_and_HR        payroll registers, roster, leaver/joiner listing, letters, contracts
 04_Fixed_Assets_and_Depreciation  asset register + depreciation lead schedule + purchase orders + disposals + rollforward
 05_Accounts_Receivable   customer master, A/R aging + open-invoice detail, allowance memo, sales invoices, shipping documents
 06_Inventory             inventory listing, roll-forward, physical count sheet
 07_Debt_and_Interest     debt amortization schedule + lender confirmation
 08_Cash_and_Bank         bank reconciliation + bank statements + bank confirmation
 09_Vendors_and_AP        vendor master + AP vendor invoices + AP aging + receiving reports
 10_Management_Representations  signed management representation letter + related-party note
 11_Confirmations         A/R confirmation requests & replies + attorney legal letter
 12_Subsequent_Events     January cash receipts & disbursements, January vendor invoices, board minutes
 13_Internal_Controls     control deficiency log (for you to complete)
 14_Audit_Workpapers      sampling plan, per-cycle workpaper templates, proposed-AJE register + summary of misstatements

HOW THE WORKBOOK TIES (read me first)
 Tieout_Workbook is formula-linked. The only hard-keyed numbers are genuine SOURCE
 data: the raw JV_Listing, Opening_Balances, the Payroll_Reconciliation roster
 salaries, the A/R aging buckets, inventory quantities and unit costs, and three
 debt inputs (opening principal, annual rate, level monthly principal). Every total,
 extension, balance and roll-forward is a formula you can click into and trace:
 JV_Listing + Opening_Balances -> Trial_Balance (SUMIF per account)
 Trial_Balance (Ending column) -> Income_Statement & Balance_Sheet (cell links)
 A/R row totals = SUM of buckets; Inventory value = Qty x Unit Cost; Debt rolls
 forward (interest = balance x rate, ending = beginning - principal) month to month
 AR / Inventory / Debt / Bank / Payroll / Fixed assets -> Tie_Out_Checks (PASS/FAIL formulas)

RECONCILIATION CHECKLIST  [02_General_Ledger_and_JEs]
 Reconciliation_Checklist_2025.xlsx -- one page listing the most important ties
 (trial balance in balance; statements to TB; A/R, inventory, debt, bank, fixed assets,
 payroll, capex, and the proposed-AJE roll-up) each with a PASS/FAIL and where to verify
 it with a live formula. Start here to confirm the data set hangs together.

CORE (Books) -- source of truth  [02_General_Ledger_and_JEs]
 jv_listing_lines_2025.csv -- JV lines with posting dates and Entered_By/Approved_By sign-offs (review for unusual timing, weekend/year-end postings, round numbers, and segregation of duties)
 opening_trial_balance_2025.csv / ending_trial_balance_from_JV_2025.csv (+ .xlsx with live Activity/Ending formulas)
 TIE_OUT_REPORT_2025.txt / TIE_OUT_PER_JE_2025.csv

FINANCIAL STATEMENTS  [01_Financial_Statements]
 Financial_Statements_2025.pdf -- IS + BS + Materiality (this year)
 financial_statements.pdf -- comparative two-year IS + BS with YoY % change
 Comparative_Financial_Statements_2025.xlsx -- comparative IS + BS in Excel (live Change %)
 prior_year_financials.pdf -- prior-year comparative (2024)

PAYROLL & HR -- TWO-YEAR CONTINUITY (03_Payroll_and_HR)
 Workforce roll-forward: 39 active at 2024 year-end, less 6 leaver(s), plus 3 joiner(s) = 36 active at 2025 year-end.
 Employee identities (Emp_ID / Name / Department / Hire_Date) are STABLE across both years;
 survivors receive merit raises, so the two payroll rosters describe the same people.
 leaver_joiner_listing_2025.csv -- every leaver and joiner with dates, reason and final pay date
 (vouch each name to Resignation_Letters/ or Employment_Contracts/ -- the listing does not say which files exist)
 Leaver_Joiner_Workpaper_2025.pdf -- headcount roll-forward + leaver/joiner detail tables
 Resignation_Letters/ -- one PDF per voluntary leaver who has a letter on file
 Employment_Contracts/ -- one signed-offer PDF per joiner who has a contract on file

OTHER SUBSTANTIVE EVIDENCE (each ties to the trial balance)
 customer_master.csv / ar_aging.xlsx / ar_open_invoices xlsx -- invoice-level A/R; allowance_calculation_memo gives management's calc (ties to 1100)
 inventory_listing.xlsx / inventory_rollforward xlsx / inventory_count_sheet xlsx (complete the blank variance columns) -- ties to 1200
 debt_schedule.xlsx -- 12-month amortization (ties to Notes Payable 2400; interest 5950; 12 monthly payment JEs)
 bank_reconciliation.pdf (itemized outstanding checks + deposit in transit) / Bank_Statements/ -- reconciles to GL Cash 1000
 ap_aging xlsx -- open vendor invoices by age (ties to 2000); Receiving_Reports/ supports the three-way match
 11_Confirmations/ + 12_Subsequent_Events/ -- confirmations, legal letter, January receipts/disbursements, board minutes
 fixed_asset_register.pdf / asset_register.csv (+ .xlsx) -- cost, salvage, life, prior accumulated and depreciation booked this year
 Depreciation_Workpaper_2025.pdf -- lead schedule of inputs and booked depreciation; recompute straight-line and compare

PRIMARY WORKBOOK  [02_General_Ledger_and_JEs]
 Tieout_Workbook_2025.xlsx -- formula-linked workbook. Tabs include:
 JV_Listing, Opening_Balances, Trial_Balance, Income_Statement, Balance_Sheet,
 AR_Aging, Inventory, Debt_Schedule, Bank_Reconciliation, Materiality (blue STUDENT INPUT cells),
 Prior_Year, Analytical_Review,
 Payroll_Reconciliation (roster -> GL 5100), Headcount_Rollforward (prior - leavers + joiners),
 Tie_Out_Checks (PASS/FAIL; includes the fixed-asset ties), Account_Map
 Mapper_JV_to_FS_2025.xlsx -- JV-to-FS mapper (also formula-linked)

Closing mode: pre. Net income is calibrated to a positive target margin;
revenue is linked to payroll (salaries are a set fraction of revenue), so the two are no longer independent.
