You are auditing Accounts Receivable of HUSKY Corp. as of December 31, 2002. The Accounts Receivable general ledger balance is $4,263,919.52. Download the data files from the IDEA Software CD. The data files can also be found on the book web site http://rittenberg.swcollege.com.

Import (one at a time) the files labeled “HUSKY Unpaid Invoices 2002,” “HUSKY Shipping File 2002,” and “HUSKY Credit Limit 2002.” The supporting subsidiary file, “Unpaid Invoices 2002,” represents the 12/31/2002 unpaid invoices. “Shipping File 2002” contains the shipment dates for those invoices. “Credit Limit 2002” contains each customer’s credit limit. Sales are made FOB shipping point.

Required:

a. Using IDEA:

1. Foot the file of unpaid invoices using the field statistics tab, agree to the general ledger and print the field statistics for the audit documentation and note the other statistics provided.

2. Identify customers with balances over their credit limit and print out the results.

3. Perform a sales cutoff test to identify any unpaid invoices with shipping dates in 2003 and print out the results including the total of those invoices (Hint: In the equation editor, enter dates as follows “YYYYMMDD” including the quotation marks).

4. Age the unpaid invoices, print the aging and graph of the aging, extract and print out a list of invoices over 45 days old that also shows the total of those invoices.

5. Summarize your results and describe what procedures should be performed based on those results.

b. Use IDEA to stratify the population of customer balances, print the results, and describe how this information could be used to help determine which balances to confirm.