acl major project 01 14 requirements you are a member of a team involved in the audi 695826

ACL Major Project 01 14

REQUIREMENTS

You are a member of a team involved in the audit of accounts receivable for ABC Distribution Company. A computer based sales system is used by the company. You are provided with two data tables: (See Appendix 1 for a definition of these tables)

ARSMAS.FIL Accounts Receivable Master File as at 30 June 2013.

ARSNAME.FIL Accounts Receivable Name and Address File as at 30 June 2013.

ARSMAS contains the accounts receivable master records as at 30 June 2013, after all transactions have been posted. ARSNAME contains the name and address information for each debtor.

You have been asked to use ACL audit software to analyse the ARSMAS and ARSNAME tables, and provide information to the audit team on issues to be taken into account when planning the audit. These 2 tables have been defined for you to use in ACL project ACL105 Foundations.

You are to produce an audit memorandum to the partner in charge dealing with each of the issues on the next page. Your memorandum should cover each issue and include (where appropriate) a summary of findings similar to:

Issue	Audit Objective
Number of items
Total book value
% of population
Materiality

For each issue, comment on what you found, its materiality, its implications for the client and the audit, and controls that may need review. In most cases, you will be recommending further investigation to resolve matters.You should support your findings with appropriately labelled and totalled reports generated with ACL. See Appendix 2 for information on generating reports.

Report headers should identify the client, the year end, your name and the title of the report. All reports should be sorted in a manner which focuses attention on the higher value items. Present your reports in the appendix accompanying your memorandum.

You may assume that materiality is 5 per cent of the current balance.

1. Mechanical Accuracy

(a) Total number of active debtors accounts (those with current balance > 0).

(b) Total current balance for the whole ARSMAS file.

(c) Stratification of current balance for the whole file and for each branch using the intervals: < $500, $500 1000, and > $1000.

(d) Summary of number of records and current balance for each branch (also with percentages).

2. Validity

(a) Identification of debtors with no name and address record. Report these debtors’ details by branch.

(b) Details of duplicate debtors records, summarised by branch.

(c) Full reconciliation of the record counts in the 2 files.

3. Valuation

(a) Aging analysis of debtors’ balances using days since last payment relative to 30 June 2013. Produce branch subtotals and analyse delinquent debtors.

(b) Balances exceeding credit limit, sorted in descending order on the amount of excess within branch. Show subtotals for each branch.

4. Analytical Review

(a) Comparison of current balances with opening balances highlighting debtors where the absolute change exceeds $500. Sort the report on the difference between the two balances within branch, with subtotals for each branch.

NOTE: Display last payment date as DD/MM/YY.

Include debtors’ names in all relevant reports.

APPENDIX 1

ARSMAS (Accounts Receivable Master File)

Record Layout

Field Description Name Start Length Type Decimals

1 Account Number ACCNO1 2 3 ASCII

2 Opening Balance OPENBAL 9 12 NUMERIC 2

3 Interest INTEREST 22 12 NUMERIC 2

4 Branch BRANCH 40 1 ASCII

5 Last Payment LASTPMT 46 8 DATE

(MMDDYYYY)

6 Current Balance CURRBAL 56 12 NUMERIC 2

7 Credit Limit CREDLIM 70 12 NUMERIC 2

ARSNAME (Accounts Receivable Name & Address File)

Record Layout

Field Description Name Start Length Type Decimals

1 Account Number ACCNO2 1 3 ASCII

2 Name NAME 4 17 ASCII

3 Address ADDRESS 21 25 ASCII

4 State STATE 46 2 ASCII

5 Post Code PCODE 48 5 ASCII

APPENDIX 2

ACL Assignment Submission Requirements

This project requires students to produce an audit memorandum to the audit partner addressing specified issues. This memorandum should be produced as an MS Word document. ACL reports should accompany this memorandum in an appendix. These reports should be files with filenames (reference numbers) corresponding to each issue. The memorandum and ACL report files should be submitted as instructed.

The ACL reports should be produced in a similar way as in ACL Workshop #2.4, but output in each case to an file (use the reference number as the filename, e.g. Q1a).

Use the following steps to produce an ACL report for each issue.

Create a new view called Qx (e.g. Q3b). To create a new view, right click on the source table in Project Navigator and select Properties > View. The names of existing views are displayed. Click on Add to create a new view. Specify the view name (e.g. Q3b) and select the columns for your new view.

Perform a join if required. Add any new columns as required. Remove any unwanted columns for your report. Use the mouse to drag the columns so they appear in the required order. If you plan to sort your report, make sure the main sorting column(s) is (are) positioned on the far left.

Make sure this new view is selected.

Define and set a filter if required.

Double click on each column heading (or click on Modify Column) in turn. If sorting is required, set the column as a Sort Key Column (ascending). If subtotalling is intended, set the column as a Break Column, with Suppress Duplicates. Change the formatting as required.

Now design the layout of the report (e.g. for Q3b).

Use the Change Font button to an appropriate font, e.g. Times Roman 9, bold for headings.

Use Data > Report to set:

Header: Client: ABC Distribution Company

Year End: 30 June 2013

Accounts Receivable Audit

Report Q3b: Balances Exceeding Credit Limits

Footer: Course Code, Student Number, your name

Select: Presort

Detailed (not summarized) report

Single spacing

Select Output To: File

Select File Type: HTML Text File

Click on Name: select the destination folder and enter the file name, e.g. Q3b

Click on OK to create the report.

Confirm that the report was generated by locating the file (Q3b) in the destination folder. Double click to open and, if you wish, print the report.

These specifications are stored with the view definition. Accordingly, this report can be generated again if needed.

Additional Notes

Students are expected to submit a good quality audit memorandum, suitable for submission to the partner in charge. They should address each issue, referring to their findings (e.g. number of items, total book value, materiality of findings) and reports located in the appendix.

Reports should be consistently labelled, identifying the client, year end, student name(s) and report title. Columns should be formatted (currency for dollar amounts). Reports should be sorted in descending book value sequence where relevant.

Materiality is 5 per cent of the total balance. Students should comment on the materiality of their findings, individually and in combination.

The memorandum should end with a summary of findings and an overall conclusion.

If any fields have faulty data, comment on this and the controls in the application.

7102AFE ACL Project Criteria Sheet

Student Name(s): ……………………………………………………………………. Student No.(s): ……………………………….

(Please write in block letters here. This sheet will be the second page of your assignment following the Assignment Cover Sheet.)

Criteria	Unsatisfactory	Low Pass – Pass	Above Average	Excellent	Marks
Analysis and Judgment	Provided information from the case. No logical argument was presented leading to a satisfactory conclusion.	Identified relevant information from the case. There was some evidence of logical argument leading to a conclusion.	Identified and analysed relevant information from the case. There was good evidence of logical argument leading to and supporting a conclusion.	Relevant information from the case was identified and analysed comprehensively. Strong evidence was shown of a logical argument that led to and supported a conclusion.	/4
Communication	Failed to submit an audit memorandum. Wrote in an unclear and unstructured manner with unsatisfactory spelling, punctuation, and grammar. Did not acknowledge sources.	Submitted an audit memorandum and wrote in a clear and structured manner with satisfactory spelling, punctuation, and grammar. Acknowledged sources.	Submitted an audit memorandum with Introduction, appropriate sections, and overall summary and conclusions. Wrote in a clear, logical and structured manner with good spelling, punctuation, grammar and referencing.	Submitted an audit memorandum with Introduction, appropriate sections, and overall summary and conclusions. Wrote in a clear, logical and structured manner with correct spelling, punctuation, grammar and referencing.	/2
Technology Application	Demonstrated little competence in applying ACL software to produce professional quality, consistently presented and correct output to meet project objectives.	Demonstrated some competence in applying ACL software to produce professional quality, consistently presented and correct output to meet project objectives.	Demonstrated good competence in applying ACL software to produce professional quality, consistently presented and correct output to meet project objectives.	Demonstrated a high level of competence in applying ACL software to produce professional quality, consistently presented and correct output to meet project objectives.	/9
Total Marks					/15