you are a member of a team involved in the audit of accounts payable for abc dis 353532

Aug 29, 2021 | Uncategorized

You are a member of a team involved in the audit of accounts payable for ABC Distribution Company. A computer based accounts payable system is used by the company. You are provided with three data files (access using ACL105 Foundations project):

VENDOR Vendor Master File as at 31 December 2000.

AP_TRANS Vendor Transaction File for the year 2000.

You are to produce an audit memorandum to the partner in charge dealing with each of the following issues. You should support your findings with appropriately labelled and totalled reports generated with the ACL package.

You are to submit your audit memorandum in a Word document

You are to submit your findings for each of the objectives in htm files (no other format will be accepted. Do not attempt to embed your htm files in the Word document).

Report headers should identify the client, the year end, your name and the title of the report. Present your reports and extracts from logs in the appendices accompanying your memorandum.

Audit Objectives

  1. Produce a vendor invoice report showing the vendor number, vendor name, invoice number, invoice date and invoice amount for each accounts payable transaction. Sort this report by invoice number within vendor and subtotal this report by vendor.
  2. Produce a report showing the details of vendors with no transactions.
  3. Produce a report showing any duplicate vendor records. Also, search for duplicate transactions, e.g. with the same vendor number, date, amount, product, etc.
  4. Prepare a vendor purchases summary, showing the percentage for each vendor (in descending order) of total purchases. Which vendors are the top 4?
  5. Stratify invoice amounts. Identify the larger transactions.
  6. Discuss the relevance of objectives 1 6 to detecting accounts payable fraud.

Input Files

According to the client’s system documentation, the vendor master file (VENDOR) and accounts payable transaction file (AP_TRANS) have the following fields:

VENDOR

Field No. Field Description Field Name

1 Vendor number VENDOR_NO

2 Vendor name VENDOR_NAME

3 Vendor last active date VENDOR_LAST_ACTIVE

AP_TRANS

Field No. Field Description Field Name

1 Vendor number VENDOR_NO

2 Invoice number INVOICE_NO

3 Invoice date INVOICE_DATE

4 Invoice amount INVOICE_AMOUNT

5 Product number PRODNO

6 Quantity QUANTITY

Points about writing the memorandum:

Note that your memorandum is to the partner in charge. It is therefore an internal memo.

Ideally your memorandum should be no more than 2 pages in length. The purpose of the memo is to detail the findings from your ACL reports and then to discuss relevant issues pertaining to objective 6 above. There is no requirement to discuss the process that was used to generate the reports.

A memorandum does not require references. Use appropriate headings; dot points are acceptable.

Attachments: