Final engagement sign-off packet
For Westbrook Distribution · Engagement ENG-2031 (Westbrook Distribution FY26 GAAP audit)
Engagement period Mar 25, 2026 – Jun 3, 2026 · Partner Marcus Sterling · Manager Aisha Patel · Active
Engagement
Annual GAAP audit; revenue, inventory, AR, fixed assets, internal controls. 38 standard PBC requests + ad-hoc.
| Client | Westbrook Distribution (Distribution) |
| Primary contact | Sarah Kim · sarah.kim@westbrookdist.com |
| Engagement partner | Marcus Sterling |
| Audit manager | Aisha Patel |
| Audit areas | A1 Revenue + receivables · A2 Inventory + cost of sales · A3 Fixed assets + depreciation · A4 Internal controls + sign-off |
| PBC requests | 38 total · 19 received · 18 outstanding · 1 overdue |
| Fieldwork hours | 58.0h logged (82% of budgeted hours) |
Workpapers
Each workpaper documents test of an audit assertion or control. Reviewed workpapers are cleared by the engagement reviewer; quality-reviewer pass confirms independent QC.
| Code | Workpaper | Audit area | Preparer | Status |
|---|---|---|---|---|
| WP-1001 | Revenue recognition cutoff test Test 30 days pre and post year-end. Examine shipping documents, invoices, customer acknowledgements. | A1 Revenue + receivables | Maya Chen | Accepted |
| WP-1010 | AR aging + confirmation sample Send positive confirmations to top 10 + statistical sample of 30. Reconcile to subledger. | A1 Revenue + receivables | Maya Chen | Accepted |
| WP-2031 | Physical inventory observation Observed Dec 31 count at 3 warehouses (Phoenix, Dallas, Atlanta). 40 test counts. | A2 Inventory + cost of sale | Maya Chen | In review |
| WP-2050 | Cost flow + standard cost reconciliation Reconcile standard costs to actual; variance analysis on top 20 SKUs. | A2 Inventory + cost of sale | Maya Chen | In review |
| WP-2042 | Inventory LCM analysis Lower-of-cost-or-market testing on slow-moving and obsolete inventory. 4 product lines. | A2 Inventory + cost of sale | Maya Chen | Prepared for review |
| WP-2060 | Year-end inventory rollforward Rollforward from observation date to year-end. Receipts, shipments, adjustments. | A2 Inventory + cost of sale | Maya Chen | Awaiting client |
| WP-4090 | ICFR walkthrough — revenue cycle Walkthrough of revenue cycle controls; identify deficiencies. | A4 Internal controls + sign | Maya Chen | Awaiting client |
| WP-2055 | Inventory obsolescence reserve Reserve methodology test; aged inventory >180 days. | A2 Inventory + cost of sale | Maya Chen | In progress |
| WP-3070 | Fixed asset existence + additions Existence testing on 25 assets; review FY26 additions >$50k. | A3 Fixed assets + depreciat | Maya Chen | In progress |
| WP-3075 | Depreciation recalculation Recompute depreciation expense for top 50 assets; reconcile to GL. | A3 Fixed assets + depreciat | Maya Chen | In progress |
| WP-4095 | Partner sign-off memo Engagement summary memo: scope, exceptions, partner conclusions. | A4 Internal controls + sign | Aisha Patel | In progress |
2 reviewed · 3 in review · 6 in progress. Reviewer Hank Mendez has cleared all reviewed workpapers. Quality reviewer (Diego Ortega) independent pass is the final gate before partner sign-off.
Exceptions
Audit exceptions are findings that require disposition before sign-off. Each is evaluated against engagement materiality ($25,000); dispositioned exceptions are documented with management acknowledgement or alternative procedures.
| Code | Finding | Magnitude | Status |
|---|---|---|---|
| EX-2031-01 | AR confirmation exception — unconfirmed $14,500 Customer ABC Distributors did not respond to confirmation. Alternative procedure traced $11,200; $3,300 unresolved. | $3,300 | Dispositioned |
| EX-2031-02 | Inventory count variance — Phoenix warehouse Test count variance $8,700 (0.7%) exceeds 0.5% threshold. Adjustment proposed. | $8,700 | Dispositioned |
| EX-2031-03 | Cutoff exception — shipping 12/29 3 invoices dated 12/29 with shipping docs in January period. Revenue reclassification. | $42,000 | Sent |
| EX-2031-04 | Impairment indicator — Atlanta facility Operating losses on Atlanta facility 3 consecutive years. Recommend impairment analysis. | — | Draft |
| EX-2031-05 | Capitalization policy deviation — 4 expenses 4 capital expenditures expensed rather than capitalized; $28k cumulative. | $2,800 | Sent |
2 dispositioned · 3 open. Sign-off is gated on disposition of every exception. Open exceptions are routed to the engagement partner with proposed adjustments.
Sign-off
Sign-off authority for ENG-2031 is the engagement partner (Marcus Sterling), subject to independent quality-reviewer pass and disposition of all exceptions. This packet captures the state at packet rendering time and accompanies the partner sign-off memo (workpaper WP-4095).
| Gate | State | Owner |
|---|---|---|
| All workpapers reviewed | 3 in review | Hank Mendez (reviewer) |
| All exceptions dispositioned | 3 open | Aisha Patel (audit manager) |
| PBC complete | 1 overdue | Sarah Kim (client) |
| Quality reviewer pass | Pending | Diego Ortega (quality reviewer) |
| Partner sign-off | Pending | Marcus Sterling (engagement partner) |
Engagement hours summary
| Team member | Hours logged |
|---|---|
| Maya Chen | 39.0h |
| Aisha Patel | 9.0h |
| Hank Mendez | 8.0h |
| Marcus Sterling | 2.0h |
| Total | 58.0h |
Sign-off authorities
The signatures below indicate the engagement is complete and the workpaper bundle is filed. Filed bundles retain for 7 years per firm policy and AICPA standards. Partner sign-off is the final gate.