User Account

All Pages

ACL Case 3, Auditing

Assignment Help:
Sales are shipped FOB shipping point with credit terms n/45. You have verified that the last shipping number used in 2009 was 261,336 and that numbers were used in numerical order. Tolerable materiality is set at $500,000 for account receivable. You have asked for and received the following files related to account receivable, along with a file containing confirmation results.

File Name and Description Data Elements

All unpaid invoices at 12/31/2009 Customer No.

Invoice Number

Invoice Date

Amount

Ship Date

NSG Shipping Invoice Number

(Shipping number for each unpaid invoice) Ship No.

NSG Credit Customer No.

(Credit limit for each customer) Customer No.

Credit Limit

NSG Confirmation

(Results of the confirmation process. Invoice Number

There are four different Confirmed (Amount confirmed)

Confirmation files A, B, C and D) Comment (Explanation of the results of the confirmation

Required:

Use ACL to perform, or help perform, the procedures in the following audit program

Develop and turn in audit documents in the following order (property index each document for cross-referencing purposes):

The audit program with your initial and references filled in for each procedure.

A memo summarizing the results of the procedures (including the dollar impact of actual or potential misstatements) and identifying any additional procedures the results indicate should be performed. Be sure to provide cross- references to supporting printout and other documents

Appropriate printout that contain handwritten narrative explanations of each printout and its significance. Be sure to develop dollar information appropriate to each procedure to help identify the significance of any findings. Do not print out the entire Accounts Receivable or any related file. Extract only the items of significance.

Procedure Done by W/P Ref.

1. Foot the file and agree to the general ledger

2. Check for duplicate invoice numbers in the unpaid invoices and shipping files

3. Age the unpaid invoices and identify any unpaid invoices older than 45 days

4. Identify any customer balances that exceed the credit limit or for which there is no credit limit. (Customer number must be in ASCII format)

5. Perform a sales cutoff test

6. Determine if any customers have a negative balance and consider the need to reclassify those as liabilities.

7. Select a PPS (MUS) sample of unpaid invoices. Use tolerable misstatement (materiality) of $500,00 expected misstatement of $75,000 and a TD risk of 10%. There are four different files of confirmation results: A, B, C, and D. Your instructor will assign files to the class members. Combine the confirmation file with the sample file to determine the results of the confirmation process. Determine any misstatements and project the misstatements to the population.

8. Summarize the results of the above procedures and identify additional procedures those results indicate should be performed.

Related Discussions:- ACL Case 3

Explain Statutory Audit, Statutory Audit is a mandatory audit done by a CA....

Statutory Audit is a mandatory audit done by a CA. Finance Audit is conducted by the CA to compliance the legal supplies of monitory issues. If the audit for a business or an orga

Audit of partnerships, Audit of Partnerships The audit of a partnership...

Audit of Partnerships The audit of a partnership is not normally required by statute and so the auditor must agree with the client what his rights and duties are going to be. T

Define master data management, (a) Define each of the following four concep...

(a) Define each of the following four concepts. -Master Data Management -Data Quality -Data Governance -Cloud Computing Explain how they relate to the various Busine

Internal controls, Ask Describe the weaknesses in internal control and reco...

Ask Describe the weaknesses in internal control and recommend improvements in Swan’s procedures for the purchase, receipt, storage and issue of raw materials. Organize your answer

Determine the audit methodologies to conduct an audit, You are the external...

You are the external auditor of Apex tour Ltd, a company which promotes New Zealand tours to Australia and owns chain duty free shops. You have been auditing the company since it w

Documentation of representations by management, Documentation of Representa...

Documentation of Representations by Management The auditor would ordinarily involve in audit working papers evidence of management's representations in form of a summary of or

Research and development - audit process, Research and Development - Audit ...

Research and Development - Audit Process The past of business is littered along with cases of companies which have collapsed as a convulsion of over indulgence in discover and

Explain what further evidence you would seek in relation, 1. On 5 August 20...

1. On 5 August 2012, the financial controller informed you that the board has recently received a letter from the assistant general manager, Mr. Tan. The letter contains a confessi

Motor vehicles - audit process, Motor Vehicles - Audit Process Similar...

Motor Vehicles - Audit Process Similar considerations govern the audit of motor vehicles as to those relating to machinery and plant.  The simply matter of consideration now i

Liability to third parties, Liability to third parties For long time li...

Liability to third parties For long time liability to third parties existed only in respect to physical damage. Liability for financial loss is a current development.  Illustra

Write Your Message!

Captcha
Order Assignment

Featured Services

Order Now

Popular Subjects

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +91-977-207-8620

Phone: +91-977-207-8620

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd