As part of planning the audit of JA Tire Manufacturing for the year ended December 31, 2023, you are assisting with the performance of risk assessment procedures. The manager has asked you to help perform some initial data analytics to help obtain an understanding of the business operations and processes related to sales. Visit the textbook website to download the data file “JATireSales.xls” provided to your audit firm by the company. If you have not already done so, read the JA Tire Manufacturing system description provided on the first tab of the Excel file before attempting this assignment to familiarize yourself with the sales process and the relevant worksheets and terminology. This file contains sales transaction information for the year ended December 31, 2023. You will use this data file to perform the following audit procedures. 

Required

a. Open the data file and review the contents for each of the worksheets (Sales Order, Bills of Lading, Invoice, Cash Receipts, Customer List, and Product List). You will work with the Invoice, Sales Order, and Customer List worksheets for this problem. 

b. One of the audit objectives you are testing is the occurrence audit objective for sales. Use functions in Excel to determine whether any of the following are present, and if present, identify which observations: 

i. Invoice numbers in the Invoice worksheet with a voided sales order number in the Sales Order worksheet. Quantify the magnitude of what you identify. 

ii. Sales orders in the Sales Order worksheet with a customer number that is not on the approved customer list. Quantify the magnitude of what you identify. 

c. Based on your findings in parts b.i and b.ii, discuss any implications for planning the audit of sales.