[SOLVED] Audit Data Analytics

Audit Data Analytics
Assignment 3
Adopted from Auditing and Assurance Services, 16th Edition Arens
In this problem, you will use the data for Rockwood Corporation that was provided by ACL as part of installation files.
You will continue working with Rockwood project.Use the same project file that you used in Assignment 2
Submit: A Zip file that contains
Summary of the work you for each of the part below as a MSWord file FIDNAssign3report.docx
A copy of the log as a .HTLM file
Part 1
For this part, use the tables in SalesandCollection subfolder of the ACLRockwood project
Determine the total number of shipments recorded as sales in calendar year 2014.

Sort the Shipdate column in both ascending and descending order. What concerns do you have about shipments recorded as sales in 2014, if any?

Are there any gaps or duplicates in Shipping Numbers? What might be a plausible explanation for gaps or duplicates observed?

Create a new file of shipments summarized by customer. Which customer accounts for the most sales activity by total number of shipments? Which customer accounts for the most sales activity by the total number of items shipped? Are these amounts significant relative to total shipments?

Using the file of shipments by customer created in part d. above, sort by customer number. Do you have any concerns based on this information?

To help decide the number of shipments to select for testing, you decide to stratify on the number of items shipped after excluding all shipments with fewer than 100 items. Print the output.

Part 2
For this problem, use files in the SalesandCollection subfolder under tables in the ACLRockwood project.

Using the Invoices file, calculate the sample size and sampling interval for a record sample to be used for tests of transactions. Use a confidence level of 90, upper error limit of 6 tolerable error rate or precision, and expected error rate of zero.

What is the sample size if you increase the confidence level to 95 and do not change the other sampling parameters? What is the sample size if you increase the upper error limit to 8, with a confidence level of 90 and expected error rate of zero?

Select the sample based on the sample size determined in Part 2.b. Save the file using a naming convention such as invoicesample.

What is the invoice number of the largest invoice selected for testing? Does your sampling plan consider invoice amount?

Assume you found one error in the sample. Without using ACL, will your results be acceptable? Explain. Now use ACL to calculate the upper error limit frequency. SamplingEvaluate Error; input the confidence level, sample size, and one error.

Part 3
For this problem, use the tables in SalesandCollection subfolder of the ACLRockwood project.
Using the Invoices file, filter the file to retain only those invoices that are still outstanding Determine the number and total dollar amount of the outstanding invoices. Save this view as AccountsReceivable

Determine accounts receivable outstanding from each customer and total the amount for comparison to part a. Use Summarize and Total commands. Which customer number has the largest balance due?

What is the largest and smallest account balance outstanding? Quick Sort

Using the AccountsReceivable data, age records with outstanding status based on invoice date. Use December 31, 2014 as the cutoff date, and enter aging periods of 0, 30, 60 and 90 days. Age How many invoices are more than 90 days outstanding? How can the auditors use the aging information in the audit of accounts receivable?

Part 4
Using the AccountsReceivable data, calculate the sample size and sampling interval for an MUS sample based on total Invoice Amountfor AccountReceivable. Use a confidence level of 90, materiality of 50,000, and expected errors of 2,500. SamplingCalculate Sample Size; select monetary radio button

What is the sampling size and sampling interval if you increase materiality to 60,000 and decrease expected errors to 1,000?

Select the sample based on the sampling interval determined in part a. Sampling Sample; select Sample type as MUS. For Sample Parameters select fixed interval and enter the interval from part a.; use a random start of 3179.

How many items were selected for testing? Why is the number selected for testing less than the sample size determined in part a.?

What is the largest item selected for testing? How many sample items are larger than the sampling interval? How many items are larger than the sampling interval in the population