Cloud 9 - Continuing Case

You have been asked to assist in the planning and development of audit data analytics as a substantive test for Cloud 9. Cloud 9 uses an evaluated receipt settlement system that involves electronic invoice presentment and payment (EIPP) for 90% of its purchase transactions. The following information is captured electronically within this system.

	Database		Field Code		Field Description		Data Type		Data Input By
	Vendor Master File		Vendor_ID		A unique identification number for each vendor		6-digit number		Cloud 9
			Vendor_ADD		Vendor's mailing address excluding city, state, post (zip) code		Text		Cloud 9
			Vendor_CITY		City associated with Vendor_ADD		Text		Cloud 9
			Vendor_STATE		State associated with Vendor_ADD		Text		Cloud 9
			Vendor_PC		Vendor post (zip) code		Text		Cloud 9
			Vendor_COUN		Country associated with Vendor_ADD		Text		Cloud 9
			Vendor_Bank Account Number		Routing number and account number for vendor		Numeric data		Cloud 9
			Vendor Credit Limit		Amount of credit extended by the vendor		9-digit number		Cloud 9
	EIPP
	DatabaseC		Vendor_ID		A unique identification number for each vendor		6-digit number		Cloud 9
			EIPP_NO		A unique transaction number that follows each transaction from order (serves as purchase order number), through shipment (serves a shipment number), receiving (serves as receiving number), invoicing (serves an ASN number), recording of the liability (serves as voucher number) and payment (number identified on payment).		14-digit number		Cloud 9 and Vendor
			PO_DATE		Order date		MM/DD/YYYY		Cloud 9
			PO_SHIP_ADD		Shipping address for PO excluding city, state, post (zip) code		Text		Cloud 9
			PO_CS		PO_SHIP_ADD		Text		Cloud 9
			PO_PC		Post (zip) code for PO_SHIP_ADD		Text or number		Cloud 9
			PO_COUNTRY		Country associated with PO_SHIP_ADD		Text		Cloud 9
			PO_PROD_CODE		Product number		14-digit number		Cloud 9
			PO_PROD_QUANT		Inventory quantity ordered by Cloud 9		7-digit number		Cloud 9
			PO_PROD_PRICE		Price per unit for each item ordered by Cloud 9		$X,XXX.XX		Cloud 9
			PO_ACCT		Account charged based on ordering department		5-digit number		Cloud 9
			TOTAL_ORD_PRICE		Total price for the individual purchase order		$XXX,XXX.XX		Cloud 9
			ASN_DATE		ASN date		MM/DD/YYYY		Vendor
			PROD_NO		Unique inventory number		14-digit number		Vendor
			PROD_QUANT		Inventory quantity ordered by Cloud 9		7-digit number		Vendor
			PROD_PRICE		Price for each item ordered by Cloud 9		$X,XXX.XX		Vendor
			ASN_TOTAL		Sum total of the vendor's advance shipping notice		$XXX,XXX.XX		Vendor
			ASN_TERMS		% discount allowed if paid within XX days from receiving date		PP.P%/XX		Vendor
			BILL_ADD		Billing address excluding city, state, post (zip) code		Text		Vendor
			BILL_CS		City and state (separated by a comma) associated with BILL_ADD		Text		Vendor
			BILL_PC		Post (zip) code associated with BILL_ADD		Text		Vendor
			BILL_COUNTRY		Country associated with BILL_ADD		Text		Vendor
			BL_DATE		Bill of lading date		MM/DD/YYYY		Vendor
			SHIP_ADD		Shipping address excluding city, state, post (zip) code		Text		Vendor
			SHIP_CS		City and state (separated by a comma) associated with SHIP_ADD		Text		Vendor
			SHIP_PC		Post (zip) code associated with SHIP_ADD		5-digit number		Vendor
			SHIP_COUNTRY		Country associated with SHIP_ADD		Text		Vendor
			SHIP_PROD_NO		Unique inventory number		14-digit number		Vendor
			SHIP_QUANT		Inventory quantity shipped by vendor		7-digit number		Vendor
			REC_DATE		Date of receipt of goods		MM/DD/YYYY		Cloud 9
			REC_ADD		Shipping address excluding city, state, post (zip) code		Text		Cloud 9
			REC_CS		City and state (separated by a comma) associated with SHIP_ADD		Text		Cloud 9
			REC_PC		Post (zip) code associated with SHIP_ADD		5-digit number		Cloud 9
			REC_COUNTRY		Country associated with SHIP_ADD		Text		Cloud 9
			REC_PROD_NO		Unique inventory number of item received		14-digit number		Cloud 9
			REC_PROD_QUANT		Quantity of inventory item received		7-digit number		Cloud 9
			VOUCHER_DATE		Date of recording the liability		MM/DD/YYYY		Cloud 9
			VCH_ PROD_NO		Unique inventory number on voucher		14-digit number		Cloud 9
			VCH_PROD_QUANT		Inventory quantity on voucher		7-digit number		Cloud 9
			VCH_PROD_PRICE		Price for each item on voucher		$X,XXX.XX		Cloud 9
			VCH_TOTAL		Sum total of the liability on voucher		$XXX,XXX.XX		Cloud 9
			VCH_ACCT		Account charged with liability for purchase		5-digit number		Cloud 9
			PAY_DATE		Date of payment		MM/DD/YYYY		Cloud 9
			TOTAL_PYMT_AMT		Total amount of payment of invoice		$XXX,XXX.XX		Cloud 9

Required

Plan a substantive test of purchase transactions using ADA as a substantive test. When planning the substantive test, identify the following:

1. a. What is (are) the assertion(s) being tested?
2. b. What information are you comparing electronically for each assertion?
3. c. What electronic evidence would represent a misstatement for each assertion?