Information Produced by the Entity (IPE)
Module 4 Critical Thinking Assignment Option 1
Examples of IPE from a transaction process
Complete the following table, indicating whether the item is an example of IPE from a transaction process
and explain why or why not in some level of detai.
Item
Accounts receivable listing
Inventory rollforward
A listing of invoices paid to suppliers
An investment account end-of-year
statement
The reconciliation of book to tax income
tax differences for the current year
The write-off of accounts receivable
The write-off of obsolete inventory
A payroll exception report prepared by
ADP
A report containing new vendors
approved by the purchasing department
An unpaid vendor invoice
A list of product liability claims from
customers
The allocation of overhead to various
products in production
Warranty conditions provided to
customers on sales contracts
The bank reconciliation prepared by the
Company’s bank
IPE?
Why or why not?
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