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ACCT402 Auditing

ACL Software & Writing Assignment

Due: per the syllabus at the beginning of class

Requirements

The following questions require the use of ACL software. Information about installing and using ACL and solving this problem are found in the textbook in the Appendix. If you don’t have the appendix, please let me know. You should read all of the reference material preceding instructions before locating the appropriate com​mand to answer the questions. The textbook comes with the software. If you have used textbook or you just do not have the ACL software, and you are choosing Please obtain snapshots of the output you get and answer the questions by commentaries, and submit them in a presentable format you deem appropriate. Please note other than the listed commands, alternative commands can be used to answer the questions. It is appropriate also to answer the questions using these alternative commands. Not all answers require snapshots of software output. Please include your answers to all questions listed below. Please note this is an individual assignment (not team-based), you may turn in the assignment in hardcopy (preferred), or via email.

Purpose of this part: In this part, you are looking to foot the client’s payroll transaction file, and obtain total payroll and number of transactions..etc. in this assignment you are also looking for discrepancies in net pay reported by a client.

1. For this problem, use the file labeled “Payroll” in the “payroll_Analysis” subfolder under tables in Sample_Project. The suggested command or other source of information needed to solve the problem requirement is included at the end of each question.

a. Determine the number of payroll transactions in the file. (Read the bottom of the Payroll file screen.)

b. Determine the largest and smallest payroll transaction (gross pay) for the month of September. (Quick Sort)

c. Determine gross pay for September. (Total)

d. Determine and print gross pay by department. (Summarize). Compare the answer to c, are they equal?

e. Recalculate net pay for each payroll transaction for September and compare it to the amount included in the file. (Filter) are the recorded amounts correct?

f. Determine if there are any gaps or duplicates in the check (Cheque) numbers. What are your concerns when looking for gaps or duplicates? (Gaps and Duplicates)

Purpose of this part: In this part, you are looking through the inventory file to obtain information about total inventory at cost and at market, unit cost, unit price, and assess appropriate valuation of inventory.

2. For this problem use the “Inventory” file in the “Inventory_Review” subfolder under tables in Sample_Project. The suggested command or other source of information needed to solve the problem requirement is included at the end of each question.

a. Obtain and print statistical information for both Inventory Value at Cost and Market Value. Determine how many inventory items have positive, negative, and zero values for both Inventory Value at Cost and Market Values. (Statistics)

b. Use Quick Sort Ascending and Descending for both Inventory Value at Cost and Market Value. (Quick Sort) Use this information and the information from part a to identify at least two concerns you have in the audit of inventory.

c. Calculate the ratio of Inventory Value at Cost to Market Value and sort the result from low to high. (Computed Fields and Quick Sort or use Add Columns by right clicking on the Table and Enter an Expression, then Quick Sort). Identify concerns about inventory valuation, if any.

Purpose of this part: In this part, you are computing total purchase journal, to compare with accounts payable general ledger balance. You are also extending (checking mathematical accuracy) of cost per unit times the purchased units. You are also looking at different vendors’ balances for related party transactions.

3. For this problem use the Metaphor_APTrans_ 2002 file in ACL_Demo. The suggested command or other source of information needed to solve the problem requirement is included at the end of each question.

a. Total the Invoice Amount column for comparison to the general ledger. (Total Field)

b. Recalculate unit cost times quantity and identify any extension misstatements. (Filter)

c. Products that Metaphor purchases should not exceed $100 per unit. Print any pur​chases for subsequent follow-up where unit cost exceeded that amount. (Filter)

d. Identify the three vendors from which the largest total dollar accounts payable occurred in 2002. (Summarize and Quick Sort)

e. For each of the three vendors in question d, list any transactions that exceeded $15,000 for subsequent follow-up. Include the vendor number, invoice number, and invoice amount. (Filter).

f. Vendor numbers 10134 and 13440 are related parties to Metaphor. Print any accounts payable transactions with those two vendors. (Filter) Also, determine the total amount of transactions with vendor 10134. (Total Field)

Purpose of this part: In this part, you are footing sales journal, accounts receivable subsidiary journals to compare with the accounts receivable general ledger. You are also looking for any account that was charged finance charges and transaction with largest customer account balance. You are also aging the largest accounts receivable balance.

4. For this problem, use the Metaphor_Trans_All file in ACL Demo, which is the file of outstanding sales invoices (each row represents an invoice transaction). The suggested command or other source of information needed to solve the problem requirement is included at the end of each question.

a. Determine the total number of invoices (read the bottom of the Metaphor_Trans_All file screen) and total unpaid invoices outstanding (NEWBAL), for comparison to the general ledger. (Total Field)

b. How many of the invoices included a finance charge (FINCHG) and what was the total amount of the finance charges? (Filter, Count Records and Total Field). Please include only positive amounts.

c. Determine and print accounts receivable outstanding from each customer and total the amount for comparison to part a (note: remove the filter from step b first).(Summarize and Total Field).

d. What is the largest and smallest account balance outstanding? ( Sort based on Summarize in c)

e. For the account with the largest balance, prepare and print an aging of the account from the transaction file using the statement date labeled “STMTTDT”. Use the aging date as of 4/30/2003 and “NEWBAL” as the subtotal field. (Filter and Age)

f. To better decide the customers to select for confirmation you decide to stratify customer balances into two intervals after excluding all balances less than $5,000. How many balances are greater than $5,000? Print the output. (Filter and Stratify)

Purpose of this part: in this part, you are looking through the accounts receivable general ledger and sales journal.

5. For this problem, use the Metaphor_AR_2002 file in ACL_Demo. The suggested command or other source of information needed to solve the problem requirement is included at the end of each question.

a. Determine the total number and amount of September 2002 transactions in the file. (Filter, Count, and Total Field)

b. Determine and print the total amount for each of the five types of 2002 transactions for comparison to the general ledger. (Summarize) Which transaction type has the highest count?

c. For sales invoices (IN), determine the number of transactions, total amount, largest amount and average size. (Filter and Statistics)

d. Determine the number of days difference between the invoice date (DATE1) and the due date (DUE) for sales invoices (IN) and evaluate the internal controls over these two dates. (Computed Field or use Add Columns by right clicking on the Table and Enter an Expression, insert). What is your conclusion about the effectiveness of internal controls?

e. To better decide the sales invoices to select for testing, you decide to stratify 2002 sales invoices (IN) after excluding all invoices less than $300. Print the output. (Filter and Stratify).

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