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

Information included in current file in auditing, information included in c...

information included in current file in auditing

Auditors procedures - audit process, Auditors Procedures - Audit Process ...

Auditors Procedures - Audit Process The relevant authority on post balance sheet events is ISA. The preparation of loss and profit account and balance sheet will forever inclu

Joint audits-advantages-disadvantages, General advantages and disadvantages...

General advantages and disadvantages of joint audits Advantages: All work and fees are welcome to audit firms. An opportunity to closely inspect the auditing methods

Audit, Why is studying Auditing different from studying other accounting to...

Why is studying Auditing different from studying other accounting topics?

Organization - work related health problems, Organization - Work Related He...

Organization - Work Related Health Problems There are various organizations both government and private which conduct researches on Biomedical and Ergonomics, Behavioral Scien

Ias 20 accounting for government grants and disclosures, IAS 20 Accounting ...

IAS 20 Accounting for Government Grants and Disclosures IAS 20 Accounting for government grants and disclosures of government assistance The auditor needs to verify the

Audit report, You are auditing XYZ company for the year ended 12/31/2012 an...

You are auditing XYZ company for the year ended 12/31/2012 and will be expressing an opinion on their financial statements as of that date. You completed your field work on 1/21/13

Auditor, auditor is a watch dog not a blood hound

auditor is a watch dog not a blood hound

Stock purchase, an example of evidence that an auditor would use by illustr...

an example of evidence that an auditor would use by illustrating the audit trail of stock purchases

Records kept by auditor, Records kept by AUDITOR of procedures applied, tes...

Records kept by AUDITOR of procedures applied, tests performed, the information obtained and pertinent conclusions reached in the course of the AUDIT. (2) Any records developed by

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