Jaysberg Electric: Using ACL in the Audit of Accounts Receivable Transactions

Answer all parts of these requirements on this page through page 8-23. It is more convenient to complete the assignment if you remove pages 8-15 through 8-23 now.

You are responsible for performing tests of controls and substantive tests of transactions for sales and sales returns and allowances in the audit of Jaysberg Electric Co. for the year ended 12/31/14. You will be using ACL to do as many audit tests as possible. You will be using three tables already included for the Jaysberg project: Jaysberg_Auth_Prices, Jaysberg_Sales_Returns, and Jaysberg_Sales_Trans. You will also be using the table of authorized prices. The headings for each table are sufficiently descriptive for your understanding.

Complete the following requirements using ACL:

For each requirement include the correct answer or exception(s) that you found and other information referred to in the question.

Q 1. Perform Verify and Count commands for all three tables and identify any exceptions.

Answer:

Q 2. Test the accuracy of the monthly postings to the general ledger. Note that the table includes a month code. Monthly sales per the general ledger are provided below.

January	$ 283,329.37	July	$ 44,668.29
February	105,863.36	August	11,811.15
March	44,842.76	September	141,178.84
April	249.48	October	658,064.64
May	189,390.87	November	601,760.99
June	133,752.33	December	404,044.14

Answer:

Q 3. Perform the following tests of controls. For each control state the command or commands that you did to test the control and the results of the test.

a. Document numbers for all documents are accounted for periodically to make sure there are no duplicates or omissions.

Control(s):

Result(s):

b. The unit cost of each product should be no more than 80% of the unit selling price.

Control(s):

Result(s):

c. All shipments are billed within four days of the shipping date.

Control(s):

Result(s):

d. No individual sale is to exceed $150,000.

Control(s):

Result(s):

e. No credit memo for a sales return is more than 60 days after the sale.

Control(s):

Result(s):

Q 4. Perform the following substantive tests of transactions. For each substantive test, state the command or commands that you did to test the amounts and the results of the test.

a. Determine that there is a shipping document number for every sales invoice number.

Command(s):

Result(s):

b. Determine the two product numbers with the largest total dollar sales for subsequent follow-up to verify the selling prices and quantities shipped.

Command(s):

Result(s):

c. Determine the two product numbers with the largest unit selling prices for subsequent follow-up to verify the unit selling prices.

Command(s):

Result(s):

d. Compare the authorized prices to the unit selling prices on the sales transactions list.

Command(s):

Result(s):

Q 5. Stratify the sales transactions. Identify and list large transactions that you believe should all be verified by examining supporting documents.

Command:

Table: