For this exercise, your client, Bright IDEAs Inc., has provided you with a listing of inventory as of year end. To analyze the amount of obsolete inventory, as reported by the client, the auditor must complete a series of related steps:

1. Import the clients database of inventory on hand (pp. 187200 of the IDEA Workbook).

2. Summarize items identified as obsolete by the client (pp. 201-204 of the IDEA Workbook).

Required Data Files:

IDEA Data Analysis Workbook

Inventory 2015.asc

Required:

Complete all of the related steps shown above using IDEA. After completing each step, answer the following questions. (Enter your answers exactly as they appear in IDEA.)

a. Upon importing the Inventory 2015.asc data file, what is the total Number of Records shown by IDEA? What is the Control Total "Net Value" for the TOTALCOST Field shown by IDEA?

b-1. How many obsolete inventory items were identified?

b-2. What is the total cost of the obsolete inventory items identified?

b-3. What percentage of the total dollar amount of the client's inventory has been identified as obsolete?

c-1. Determine the effect that your findings in part (b) would have on the auditor's assessment of the risk of material misstatement.

c-2. Determine which of the given accounts and assertions are most likely influenced by your findings.