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

A test for unrecorded liabilities, should your test for unrecorded liabilit...

should your test for unrecorded liabilities be affected by the fact that a letter is obtained in which a responsible management official certifies that to the test of his knowledge

Subsequent events - audit process, Subsequent Events - Audit Process I...

Subsequent Events - Audit Process IAS 10 Events after the Balance Sheet Date prescribes the accounting for, and disclosure of, events than the balance sheet date. Events th

Explain the importance and role of audit standards, Question 1: Auditin...

Question 1: Auditing standards regulate the audit profession. a) Explain the importance and role of audit standards. b) Lists four of the standards issued by the INTOSAI

Joint auditing, what is the role of a joint auditor

what is the role of a joint auditor

Auditing, YvesLaurent has just been put in charge of the BeautyNatural Inc....

YvesLaurent has just been put in charge of the BeautyNatural Inc. audit.BeautyNatural is a small, but growing retail chain of natural cosmetics stores. BeautyNatural needs to borro

Higher normal risk, Higher  normal risk Several audit assignments invo...

Higher  normal risk Several audit assignments involve high audit risk and usually in any client there will always be at least one high risk area.  Indications that an audit has

Adudit, For each threat explain how it might be avoided.

For each threat explain how it might be avoided.

Math, 10+22=

10+22=

Advanced Auditing Assigment, Are you able to help me my advanced auditing a...

Are you able to help me my advanced auditing assignment? It is Tuesday and it is due Friday. I have worked hard on it but I am struggling with it. Carmen

Definition of auditing , Definition of Auditing According to Internatio...

Definition of Auditing According to International Standard on Auditing (ISA) objective and common principles governing an audit of financial statements, the purpose of a financ

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