TABLE OF CONTENTS

CHAPTER 1 Summary OF WINERY/VINEYARD OPERATIONS Farming . . . 1-1

• Marketing/Sales . . .1-4
• Manufacturing . . .1-2

CHAPTER 2 SELECTION AND CLASSIFICATION OF RETURNS

• Selection of Returns . . .2-1
• Classification of Returns . . .2-2

CHAPTER 3 AUDIT COMMENTS

• Taxes . . .3-8
• Scope . . .3-1
• Salaries and Wages . . .3-8
• Repairs . . .3-8
• Rent . . .3-8
• Pension/Profit Sharing Plan and Worker Benefits . . .3-9
• Other Liabilities . . .3-7
• Other Financial gain . . .3-7
• Other Deductions . . .3-9
• Other Assets . . .3-6
• Land . . .3-7
• Inventories . . .3-6
• Interest Expense . . .3-8
• Interest Bearing Financial obligation in General . . .3-7
• Initial Interview and Walk Through . . .3-3
• Initial Document Request . . .3-2
• Income and Expense Accounts . . .3-7
• Depreciation . . .3-9
• Compensation of Officers . . .3-7
• Buildings and Another Depreciable Assets (Fixed Assets) . . .3-6
• Balance Sheet Accounts . . .3-6
• Advertising . . .3-9

CHAPTER 4 WINE INDUSTRY ISSUES

• Vineyard Issues . . .4-7
• Miscellaneous Issues . . .4-17
• Lower of Cost or Market . . .4-6
• Inventory Cost accounting Issues . . .4-1
• General Discussion . . .4-1
• Depreciation/Amortization . . .4-14
• Cash Basis Vinery . . .4-7
• Capitalized Price . . .4-12