Oryx Limited - 10 marks

As part of your audit of Oryx Limited, a company that sells industrial supplies, your firm Left and Right CPA has conducted computer-assisted audit tests using ACL (Audit Command Language) on the accounts receivables transaction file. Left and Right CPAs audited the sales and accounts receivable accounts of Oryx on a sample basis.

Accounts Receivable:

There were 2,000 customer accounts in the subsidiary ledger with a total recorded value of $375,000 for the year ended 31 December 2015. As part of the audit program, Left and Right selected a sample of 100 customer accounts having a recorded value of $20,000. They performed the audit procedures and determined that the audited amount of the customer accounts that was sampled totaled to $19,000. Tolerable misstatement was set at $25,000.

Sales Transactions:

Additionally, the auditors used ACL to generate the following report that extracted all sales transactions greater than $5,000:

EXTRACT RECORD IF Amount >= 5,000.00

Input: Records: 339Output: Records: 17

Invoice Invoice Product Product Quantity Invoice Number Date Number Class Amount 12858 01/06/2015 060112296 06 977 10.942.40 12874 01/25/2015 090081001 09 BE 5,970.40 12899 02/16/2015 090585322 09 95 13,091.00 12913 03/01/2015 090669611 09 776 6.984.00 12917 03/05/2015 080935428 08 174 7.697.76 13002 06/06/2015 010226620 01 501 5,410.80 13013 06/18/2015 010102840 01 135 5,319.00 13033 07/09/2015 052208805 05 977 5,979.24 13042 07/17/2015 080935428 08 182 8,051.68 13065 08/18/2015 090507811 09 871 7,037.68 13087 09/08/2015 090585322 09 275 37,895.00 13089 09/09/2015 052720615 05 245 10,045.00 13107 09/30/2015 090585322 09 56 7,716.80 13152 11/16/2015 052720615 05 141 5,781.00 13163 12/01/2015 024133112 02 513 5,437.80 13170 12/04/2015 024133112 02 794 8,416.40 13183 12/13/2015 010155170 01 724 5,104.20 7.474 156,880.16