Implementing of ISA’s in SME Audits
Prepared for the use of MGI-alliance on October 10, 2013 and
extended on November 27, 2013 by
Auditors’ Network Finland Ltd. / Kari W. Saari, APA
Implementing of ISA’s in SME Audits
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IFAC's Risk Based Audit Process Model
Basic Audit Procedures
Scaling of ISA-standards
SME Audit Process
Contents of audit engagement file
Implementing of ISA’s for SME Audits, contents
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IFAC's ISA –SME-Guide as background
- Presentation of IFAC's Risk Based Audit Process Model
- General comments concerning this model
Way to downscale ISA-standards for SME Audits
SME audit process using IFAC's model extended with basic audit procedures
- Preliminary Audit Procedures and materiality limits
- Risk Register and Risk Assessment Procedures
- Basic Audit Procedures
- Responding to Assessed Risks
- Reporting phase
Case example: Risks in sales process and use of assertions
Extension: Contents of audit engagement file (IFAC’s ISQC 1- SME Guide)
IFAC’s Model as Risk Based Audit Process I
Risk Based Audit Process:
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This ‘Risk Based Audit Process is described in IFACs publication named
‘Guide to Using ISAs in the Audits of Small- and Medium-Sized Entities’
The main phases of the model are:
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Risk Assessment
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Risk Response
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Reporting
IFAC’s Model as Risk Based Audit Process II
Main phase 'Risk Assessment', Activities:
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Preliminary Engagement Activities
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Planning of the Audit
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Risk Assessment Procedures
IFAC’s Model as Risk Based Audit Process III
Preliminary Engagement Activities:
Purpose:
Deciding whether to accept engagement
Documentation:
Listing of risk factors
Independence
Engagement letter
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IFAC’s Model as Risk Based Audit Process IV
Plannig of the Audit:
Purpose:
Developing an overall audit strategy and audit plan
Documentation:
Materiality
Audit team discussions
Overall audit strategy
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IFAC’s Model as Risk Based Audit Process V
Risk Assessment Procedures:
Purpose:
Identifying and assessing risks of material misstatement
through understanding the entity
Documentation:
Busines and fraud risks including significant risks
Design and implementation of relevant internal controls
Assessed risks of material misstatement
on the level of financial statements and
on the level of assertions
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IFAC’s Model as Risk Based Audit Process VI
Main phase 'Risk Respose', Activities:
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Design overall responses and further audit procedures (as risk responses)
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Implement responses to risks of material misstatement
IFAC’s Model as Risk Based Audit Process VII
Design overall responses and further audit procedures (as risk responses):
Purpose:
Developing of appropriate responses to the
assessed risks of material misstatement
Documentation:
Update of overall strategy
Overall responses to assessed risks
Audit plan that links assessed risks of material misstatement
to further audit procedures
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IFAC’s Model as Risk Based Audit Process VIII
Implement responses to risks of material misstatement :
Purpose:
Reducing audit risk to an acceptably low level
Documentation:
Work performed
Audit findings
Staff supervision
Working paper review
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IFAC’s Model as Risk Based Audit Process IX
Main phase 'Reporting', Activities:
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Evaluate the audit evidence obtained
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Decision: is additional work required?
Yes = back to perform risk assesment procedures
No = continue to the next step
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Prepare the auditor’s report
IFAC’s Model as Risk Based Audit Process X
Evaluate the audit evidence obtained :
Purpose:
Determine what additional audit work (if any) is required
Documentation:
New or revised risk factors and audit procedures
Changes in materiality
Communications on audit findings
Conclusions on audit procedures performed
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IFAC’s Model as Risk Based Audit Process XI
Prepare the auditor’s report :
Purpose:
Form an opinion based on audit findings
Documentation:
Significant decisions
Signed auditor’s report
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Comments to IFAC’s Model as Risk Based Audit Process
Comments to IFAC's model :
As the way of thinking the model is applicable in all audits
The description as audit process helps to adopt ISA-standards
Risk based approach is built on materialities
The model gives more systematics for the planning phase of any audit
The model gives the basics of how to recognize and evaluate risks
Risk based approach helps to scale ISA-standards for SME audits
Examples are concretizing the need of documentation in SME-audits
Lack: the model says nothing of basic audit procedures
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The downscaling of ISA standards I
Good Audit Practice means audits in compliance with ISA-standards
At least in Finland, according to ISAs, ISQC 1 etc., the implementation of ISA-standards
is reviewed by authorities through external quality control procedures
There are two ways to approach ISA-standards:
To document something of the implementation of every ISA-standard
(this way is too heavy for SME audits)
Risk based approach: ISA standards are needed only where they are
relevant in reducing audit risk to an acceptable low level
(this way enables rational, effective and efficient SME-audits)
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The downscaling of ISA standards II
Audit procedure groups including into every audit:
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Preliminary engagement procedures (= IFAC’s model main phase ‘Risk Assessment’)
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Basic audit procedures (IFAC’s model says nothing)
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Audit procedures responding to risks (= IFAC’s model main phase ‘Risk Response’)
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Other audit procedures (= IFAC’s model main phase ‘Reporting’)
The downscaling of ISA standards III
The purposeful course of risk based audit process in any SME-audit:
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Preliminary engagement procedures according to IFAC’s model
Designing of audit strategy and determining of materiality limits
according to IFAC’s model
Basic audit procedures and updates into risk register, differ from IFAC’s model
Risk assessment and audit plan according to IFAC’s model
Audit procedures responding to risks acccording to IFAC’s model
Other audit procedures as reporting according to IFAC’s model
The downscaling of ISA standards IV
Risk based audit process is able to scale down the ISA standards:
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In case preliminary engagement procedures accepts the audit engagement,
the next step is to design audit strategy and determine materiality limits
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Then perform basic audit procedures with updates into risk register
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Risk assessment can be part of risk register updates but should be finalized
not until all basic audit procedures are performed
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After this is the time to implement more ISA standards, but
only so far where after performed basic audit procedures still exist
significant or material risks without sufficient responses
Preliminary engagement procedures I
Obtain and document an understanding of the entity and its environment,
issues to be considered and documented:
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External factors (nature of industry; regulatory environment;
financial reporting framework)
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Nature of Entity (operations and key personnel; ownership and governance;
investment; structure and financing)
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Accounting policies (selection and application; reasons for changes;
appropriateness to entity)
(Continues)
Preliminary engagement procedures II
Obtain and document an understanding of the entity and its environment,
issues to be considered and documented, continues:
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Entity objectives and strategies (business plans and strategies;
financial implications and risks undertaken)
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Measurement and review of financial performance (what is measured;
who reviews financial results)
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Internal control relevant to the audit (processes and relevant controls
to mitigate risks at the entity level (and at the transactional level))
Preliminary engagement procedures III
Assess and document competency and independency,
independency threat factors:
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threat of self interest
threat of self-review
threat of advocacy
threat of familiarity
threat of intimidation
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safeguards if needed
Preliminary engagement procedures IV
Prelimiary audit implementation plan issues:
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Is it enough that the performing of all audit happens
after the end of the period under audit, or
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what kind of audit procedures, if any, are needed
during the period under audit.
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Is it possible to perform the whole audit alone, or
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is there also needed team structures or other help.
Preliminary engagement procedures V
Decision to accept or continue the engagement
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when preliminary understanding of the entity is obtained and
when both competency and independency are noticed and
when prelimiary audit implementation plan is prepared
then assess your own capability and adequacy of time
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if then the decision to accept is yes
prepare or update the engagement letter
Determining of audit strategy and materiality levels I
How to complement consideration of the entity to audit strategy:
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the six aspects of the concideration of the entity should be
complemented as general audit strategy with following extensions
Control environment of the entity (tone at the top;
management is always able to override controls)
Entity level IT-controls (how IT-management is organized)
Income sources and recording of incomes (always material risk area)
Related parties and related transactions (always material risk area)
Possible fraud risks (fraud triangle: pressure, opportunity, rationalization,
always material risk)
Determining of audit strategy and materiality levels II
Materiality levels according to IFAC's model:
Overall materiality (the highest materiality level
on the whole financial statements)
Overall performance materiality (lower than the above allowing room to prevent
the possibility existence of undetected and immaterial misstatements
from aggregating to a material amount)
“Specific” materiality (lower than the above for particular financial statement areas
as classes of transactions, account balances, or disclosures)
“Specific” performance materiality (lower than the above giving more room
as explained above, roughly 50 % of the highest materiality level)
.
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Regarding SMEs, one materiality level may be much enough
Determining of audit strategy and materiality levels III
Determining materiality levels in practise:
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Professional consideration is always needed
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An helping comparision value can be calculated as average of
the following four figures according to the financial statements:
1 % of financial periods turnover (or of the sum of all incomes)
2 % of balance sheet total (0,2 % if dwelling house)
5 % as absolutive value of the total of own capital (0,5 % if dwelling house)
10 % as absolute value of financial periods net result
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Risk register and handling of risks I
Risk register definition:
Basic working paper in customer file for continual updates
done beside any other audit procedure
Register that collects information of all finded (material) risks and of
controls implemented to reduce these risks
Practical hints
It is efficient to collect risk information beside basic audit procedures, and
to finalize risk assessment not until all basic audit procedures are done
after this, further audit procedures can be focused to reduce those
significant risks not reduced sufficiently through basic audit procedures
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Risk register and handling of risks II
Risk handling through 'long formula':
(= the way explained in IFAC’s ISA-SME-guide)
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Phase 1: risk identification (what could go wrong)
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Phase 2: control design (planned way to control risks by the entity itself)
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Phase 3: control implementation (are these controls implemented)
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Phase 4: control documentation (are these controls used properly and
assessment of remainder risks after these controls)
Risk register and handling of risks III
Risk handling through 'short formula':
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Also in small entities the ‘long formula’ functions well as model of thinking, but
to document the four phases separately may mean too heavy process
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An experienced auditor with good understanding of the customer,
when identifying a risk, may be able to
assess it straight according to phase 4 and
then to document only this result
Basic audit procedures I
General aspects regarding 'basic audit procedures':
The concept ‘basic audit procedures’ means such procedures that
at least are to be performed in any audit so far they are relevant
These ‘basic audit procedures’ are to be performed
in spite of materiality lines and in any sequence
The issues disclosed in appendix 2 of the old review standard ISRE 2400
(in force until the end of the year 2012) can be applicably adapted
and interpreted to describe the contents of ‘basic audit procedures’
so far they are relevant
risk register should be continually updated beside these procedures
‘Basic audit procedures’ means a kind of review and becomes as
audit when extended according to the risk based audit process
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Basic audit procedures II
The contents of 'basic audit procedures':
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Updates to basic customer information
Review of minutes and other entity governance aspects
Comparison of opening balance figures in ledgers
Comparisons of cash figures in bank statements and ledgers
Comparisons of vouchers and ledgers
Financial statements process and comparisions of figures
Substantive analytical procedures
Other basic audit procedures
Basic audit procedures III
Updates to basic customer information:
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Key persons and connections
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Those charged with governance, management and related parties
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Preciseness of disclosed information in public registers
Basic audit procedures IV
Review of minutes and other entity governance aspects:
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Review of the minutes of shareholders’ meetings or general meetings
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Review of board minutes
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Review of other entity governance aspects
Basic audit procedures V
Comparision of opening balance figures in ledgers:
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Comparing of opening balance figures in ledgers
to the figures in preceding financial statements
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A rapid routine when same auditor has audited
also the preceding financial statements
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Can be much more troublesome when the previous financial statements
is audited by another auditor or totally lacks the audit
Basic audit procedures VI
Comparision of cash figures in bank statements and ledgers:
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Comparisions to recognize how the figures in bank statements and
figures in ledgers are corresponding each others
Suggested to be done monthly covering both volumes and balances
means pervasive external control which is
not easy to override by management
Effectiveness of this control is depending on
how far bank accounts are covering all money transactions
this procedure also helps to assess the quality of ledgers and
their appropriateness as object for other audit procedures
Basic audit procedures VII
Comparision of vouchers and ledgers:
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Comparisions of cash figures in bank statements and in ledgers
are also a part of these audit procedures
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In addition, these audit procedures should cover at least material
general ledger transactions and vouchers near the end of financial period
Basic audit procedures VIII
Financial statements preparing process and comparisions of figures,
questions to be answered:
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Is the accounting system producing appropriate journals and general ledgers?
Does the accounting system produce also
balance sheets and income statements per account?
Does the structure of financial statements correspond their previous structure?
Are the comparing figures same as in previous financial statements?
(continues)
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Basic audit procedures IX
Financial statements preparing process and comparisions of figures,
questions to be answered (continues):
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Are the comparing figures sufficient?
Are the financial statements figures correspondig to ledgers?
Are the figures in the specifications of financial statements corresponding
both to ledgers and financial statements figures?
Are the calculations in financial statements correct?
Are the specifications of financial statements appropriate and sufficient?
Are the notes in financial statements according to circumstances sufficient?
(continues)
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Basic audit procedures X
Financial statements preparing process and comparisions of figures,
questions to be answered (continues):
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Are the financial statements properly signed?
Is the explanation of ledgers and vouchers appropriate and sufficient?
Are the stuctures and contents of the financial statements
appropriate according to circumstances?
What other accounting systems and ledgers are in use
in addition to entity level journals and general ledgers
(payroll ledgers?; debitors’ ledgers?; creditors’ ledgers?; inventory ledgers?;
what else?) and are they comparing to the contents of general ledger?
Basic audit procedures XI
Substantive analytical procedures:
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Analyses concerning the contents of income statement and balance sheet
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Supplying basis evidence of the contents of
income statement and balance sheet items
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Comparisions to information from other sources
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assessments of material trends
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Also analyze systems and programs can be used as help
Basic audit procedures XII
Other basic audit procedures:
The following significant questions are to be answered (verbally):
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How the conclution has been reveived that
all incomes of the entity are recognized in ledgers?
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How the conclution has been received that
all inventories are recognized in ledgers as appropriately valued?
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Assessment of the the entitys risk management and insurance issues
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How earlier audit results are utilized by the entity?
Risk response and further audit procedures I
Finalizing of risk assessment:
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Beside basic audit procedures, update entitys risk register
Finalize risk assessment not until all basic audit procedures are performed
the first phase is to assess risks ignoring internal control effects
then chart the internal controls which are reducing these risks
then assess if there still exist such significant risks that still need
mitigations through further audit procedures
Risk response and further audit procedures II
Further audit procedures:
Inquire and assess the material risk reducing internal controls that
the entity may have implemented and which are able to be tested
As far such internal controls exist, consider the needs to test them and
perform proper testing procedures
If such intenal controls cannot be found (typical circumstance in SMEs),
or if these controls are not reliable, risk response shouls be based
on substantive audit procedures
all significant risks (in SMEs typically half dozen or less)
should be responded (on assertion level)
In case the evidence received through basic audit procedures can be assessed
as sufficient to reduce all significant risks to an acceptable low level,
then no further audit procedures are needed and then
it is much enough and sufficient to document this conclusion
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Conclusions and process to correct misstatements
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Document received conclusions and their reasons
Prepare audit memorandum of recognized misstatements etc.
Communicate with management and others involved
into the financial statements preparing process, as far as needed
Ask them to perform the needed corrective actions
Review the corrections
Prepare management’s representation letter
(in SMEs typically not more than one page)
Management’s representation letter and auditor’s report
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Management’s representation letter may need following appendicies:
Audit memorandum of recognized misstatements etc.
Explanation of principles regarding related parties
Management’s representation letter, when signed
by authorized management’s representative, also gives
evidence of communications with those charged with governance
Prepare auditor’s report
Regarding SMEs it may be rational, that in same occasion both management’s
representative signs the representation letter and auditor signs auditor’s report
In case during this occasion new material issues are founded,
then, if needed, continue the audit
Case example, risks in sales process and use of assertions I
Case example, Risks in salesprocess, background:
The following case example is prepared according to the contents of IFACs
publication ‘Guide to Using ISAs in the Audits of Small- and Medium-Sized Entities’,
Third Edition, Volume 2 – Practical Quidance, pages 166 - 167
This case example descibes also the purposeful contents of risk register
Risks and assertions
Assertions are managements implicite or disclosed statements that
the items and issues disclosed in financial statements are correct.
Risks are suspicions raised through auditor’s professional scepticism that
these assertions may include misstatements
Risks can be mitigated by control activities implemented by management and
audit procedures performed by auditor
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Case example, risks in sales process and use of assertions II
Case example, existing risks and controls in salesprocess
Risk 1: goods shipped or services performed not invoiced (assertion completeness)
Control a: received order ise immediately entered into accounting system,
which automatically assigns a sequencial number
Control b: when the order is ready for shipment, a shipping document is
prepared, entered into the system and matched with the order
Control c: An invoice is then prepared by Karla from the accountingsystem,
which automatically assigns a sequential number
(continues)
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Case example, risks in sales process and use of assertions III
Case example, existing risks and controls in salesprocess
(continues)
Risk 1: goods shipped or services performed not invoiced (assertion completeness)
Control d: It is a strict rule that no shipment can be made without the
shipping document number being entered into the system
Control e: The system can then track which orders have been filed and
which ones are still pending by delivery date
(continues)
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Case example, risks in sales process and use of assertions IV
Case example, existing risks and controls in salesprocess
(continues)
Risk 2: revenues incorrect/not recorded (i.e. Cash sales)
in the accounts (assertion completeness)
Control a: Sales orders are prepared for each order received and entered into the
accounting system, which automatically assigns a sequential number
Control b: The only exception is furniture sold directly from the shop
or other small items on hand
(continues)
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Case example, risks in sales process and use of assertions V
Case example, existing risks and controls in salesprocess
(continues)
Risk 3: related party transactions not identified (assertion existence)
Control a: no controls in place at present
(continues)
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Case example, risks in sales process and use of assertions VI
Case example, existing risks and controls in salesprocess
(continues)
Risk 4: revenue recognition policies not followed (assertion accuracy and cutoff)
Control a: revenue is recorded when invoice is submitted
Control b: all orders over 500 euros, or where the sales price is
below the minimum sales price,
must be reviewed and approved by Arjan
(continues)
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Case example, risks in sales process and use of assertions VII
Case example, existing risks and controls in salesprocess
(continues)
Risk 5: fictitious sales/sales credits recorded in accounts (assertion existence)
Control a: all orders over 500 euros, or where the sales price is
below the minimum sales price,
must be reviewed and approved by Arjan
(continues)
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Case example, risks in sales process and use of assertions VIII
Case example, existing risks and controls in salesprocess
(continues)
Risk 6: goods shipped/services provided to a bad credit risk (assertion valuation)
Control a: Arjan does not do a credit check on customers
unless he does not know them or the order is large
(continues)
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Case example, risks in sales process and use of assertions IX
Case example, existing risks and controls in salesprocess
(continues)
Risk 7: sales/services recorded in wrong accounting period
(assertion accuracy and cutoff)
Control a: Karla prepares a month end report of
revenue and cash receipts for the month
Control b: the month end report is reviewed by Suraj
(continues)
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Case example, risks in sales process and use of assertions X
Case example, existing risks and controls in salesprocess
(continues)
Risk 8: receipts are partially or not deposited/recorded (fraud or error)
(assertion completeness)
Control a: cheques received are listed, totaled and reviewed before deposit
Control b: Karla prepares the daily deposit slips but
Jawad makes the cash deposit to ensure functions are segregated
(continues)
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Case example, risks in sales process and use of assertions XI
Case example, existing risks and controls in salesprocess
(continues)
Risk 9: receipts are credited to the wrong account (fraud or error)
(assertions completeness; accuracy and cutoff)
Control a: Could be noticed during the review of monthly sales and receivables
(continues)
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Case example, risks in sales process and use of assertions XII
Case example, existing risks and controls in salesprocess
(continues)
Risk 10: receipts are recorded in wrong accounting period
(assertion accuracy and cutoff)
Control a: Karla checks for proper cut off each month to ensure
receipts are recorded in the correct period
(continues)
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Case example, risks in sales process and use of assertions XIII
Case example, existing risks and controls in salesprocess
(continues)
Risk 11: no allowance is recorded for doubtful or uncolleltible balances
(assertion valuation)
Control a: accounts over 60 days are followed up for payment but
no allowance is made for doubtful accounts other than at year end
(continues)
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Case example, risks in sales process and use of assertions XIV
Case example, existing risks and controls in salesprocess
(continues)
Risk 12: overdue receivables are not followed up on timely basis
(all assertions: completeness; existence; accuracy and cutoff; valuation)
Control a: Jawad prepares an aged accounts receivable listing and
gives the lising to Suraj for his review
Control b: Accounts over 60 days are followed up each month and comments are made
on the listing as to when the customer has agreed to pay the balance
Control c: For customers who are over 90 days and have not made alternative payment
arrangements, future sales are made on cash-on-delivery basis
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Final contents of audit engagement file I
Procedures for final assembly of the engagement file should be performed ordinarily
no more than 60 days after the date of the report
IFAC’s Guide to Quality Control for Small- and Medium-Sized Practices, section 7,
includes the following checklist (year-end audit file index) of the divisons and
sections of work that sould be included into the final documentation of
each engagement file as far as relevant.
It is suggested that in the end of each engagement, go through these checklist items in
order to check that each item includes proper documented contents.
In case an item of this checklist is not relevant, document this conclusion.
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Final contents of audit engagement file II
Year-end audit file index, division 'finalization of audit',
sections:
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Audit file closing
Engagement completion memorandum
Subsequent changes to the audit file
Financial statements / auditor’s report
Final analytical review
Reviewer’s checklist
Quality control review (if EQCR applicable)
Financial statement presentation and disclosure review
continues
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Final contents of audit engagement file III
Year-end audit file index, division 'finalixazation of audit',
sections: continues
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Engagement partner / sole practitioner review
Adjusting and closing journal entries
Working trial balance
Correspondence, discussions, and notes
representation letter
Discussions with management and others
Management letter
Notes and queries
Final contents of audit engagement file IV
Year-end audit file index, division 'audit acceptance',
sections:
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Audit engagement acceptance checklist
New or continuing client
Information from predecessor’s files
Engagement letter
Understanding the entity and its environment
Client profile
Documents to request
Final contents of audit engagement file V
Year-end audit file index, division 'overall audit strategy',
sections:
65
Establishing the overall audit strategy checklist
Determining materiality
Evaluating misstatements
Identifying risks using analytical procedures
Conducting an audit team planning meeting
Assessing inherent risks
Determining whether the risks indicate the need for an EQCR
Audit budget – time and fees
Schedule of documents to be prepared by client
Overall audit strategy
Final contents of audit engagement file VI
Year-end audit file index, division 'assessing risks of material misstatement',
sections:
-
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Assessing the risks of material misstatement checklist
Inquiries
for management
for those responsible for governance
for those responsible for internal audit
for others in the entity
Evaluating the control environment
Evaluating management’s use of estimates, including fair value
continues
66
Final contents of audit engagement file VII
Year-end audit file index, division 'assessing risks of material misstatement',
sections: continues
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Information systems and internal control
General IT system and IT controls
Revenue, receivables, and receipts
Purchases, payables and payments
Payroll
Inventory, cost of sales, and production
Financing and equity
continues
67
Final contents of audit engagement file VIII
Year-end audit file index, division 'assessing risks of material misstatement',
sections: continues
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Testing controls
Revenue, receivables, and receipts
Purchases, payables, and payments
Payroll
Inventory, cost of sales, and production
Financing and equity
continues
68
Final contents of audit engagement file IX
Year-end audit file index, division 'assessing risks of material misstatement',
sections: continues
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69
Review of minutes of all meetings
Appointment of auditor (AGM resolution)
Review of client’s annual report or other document
that will include the audited financial statements
Risk assessment summary
Final contents of audit engagement file X
Year-end audit file index, division 'analytical procedures and tests of balances,
balance sheet / statement of financial position', sections:
.
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Cash and cash equivalents
Trade and other receivables
Inventories
Prepaid expenses
Investments
Property, plant and equipment
Capital assets
Goodwill and intangible assets
Continues
70
Final contents of audit engagement file XI
Year-end audit file index, division 'analytical procedures and tests of balances,
balance sheet / statement of financial position', sections: continues
-
Short-term and long-term debt
Accounts payable and accrued liabilities
Taxes payable
Other liabilities
Equity / Net assets
Continues
71
Final contents of audit engagement file XII
Year-end audit file index, division 'analytical procedures and tests of balances,
balance sheet / statement of financial position', sections: continues
.
Journal entries
Responding to indications of fraud
Going concern
Foreign currency translation
Accounting estimates
Continues
72
Final contents of audit engagement file XIII
Year-end audit file index, division 'analytical procedures and tests of balances,
balance sheet / statement of financial position', sections: continues
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73
Changes in accounting policies and correction of prior period errors
Related party transactions
Significant transactions outside the normal course of business
Contingencies and contractual obligations
Subsequent events
Economic dependence
Final contents of audit engagement file XIV
Year-end audit file index, division 'analytical procedures and tests of balances,
income statement / statement of operations', sections:
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74
Revenue
Cost of sales
Expenses
Other income and expenses
Final contents of audit engagement file XV
Year-end audit file index, division 'substantive tests of transactions', sections:
.
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75
Revenue, receivables, and receipts
Purchases, payables, and payments
Payroll
Inventory, cost of sales, and production
Financing and equity