Part 3-Substantive Testing of the Revenue (Order to Cash) Cycle. As revenue is considered a high-risk...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Part 3-Substantive Testing of the Revenue (Order to Cash) Cycle. As revenue is considered a high-risk area for most audit engagements (PCAOB 2014), you will utilize Tableau to create data visualizations and dashboards for various aspects of the audit of US Superstore's revenue (order to cash) cycle and related accounts. For the following issues, first, brainstorm in your group to develop questions that you need to evaluate with Tableau, and second, prepare the necessary data visualizations related to the following issues and questions you developed. (Refer to Chapter 7, Revenue and Collection Cycle). Your engagement partner provided the following initial substantive testing issues to your team that need to be evaluated: (1) Are there any indicators of slow-moving product? (2) Are there any indications of cut-off issues? (3) Are there any indicators of related-party transactions? (4) Which customers should receive confirmations? (5) Are there any issues or concerns with discounts and cash receipts? (6) What is the Accounts Receivable 12/31 balance for each year? Are there concerns as to the quality of US Superstore's accounts receivable? For 12/31/14, what is the total amount of accounts receivable that are more than 30, 60, and 90 days past due? Based on this analysis, identify risky items. Explain why you consider these items risky. (8) Are there any indicators that inventory might be overvalued? (9) What are shipping costs per region or product? (10) Are there any other issues you think are important? Part 3-Substantive Testing of the Revenue (Order to Cash) Cycle. As revenue is considered a high-risk area for most audit engagements (PCAOB 2014), you will utilize Tableau to create data visualizations and dashboards for various aspects of the audit of US Superstore's revenue (order to cash) cycle and related accounts. For the following issues, first, brainstorm in your group to develop questions that you need to evaluate with Tableau, and second, prepare the necessary data visualizations related to the following issues and questions you developed. (Refer to Chapter 7, Revenue and Collection Cycle). Your engagement partner provided the following initial substantive testing issues to your team that need to be evaluated: (1) Are there any indicators of slow-moving product? (2) Are there any indications of cut-off issues? (3) Are there any indicators of related-party transactions? (4) Which customers should receive confirmations? (5) Are there any issues or concerns with discounts and cash receipts? (6) What is the Accounts Receivable 12/31 balance for each year? Are there concerns as to the quality of US Superstore's accounts receivable? For 12/31/14, what is the total amount of accounts receivable that are more than 30, 60, and 90 days past due? Based on this analysis, identify risky items. Explain why you consider these items risky. (8) Are there any indicators that inventory might be overvalued? (9) What are shipping costs per region or product? (10) Are there any other issues you think are important?
Expert Answer:
Answer rating: 100% (QA)
Here are the questions I would evaluate with Tableau for the given issues along with sample data visualizations 1 Are there any indicators of slowmovi... View the full answer
Related Book For
Auditing and Assurance services an integrated approach
ISBN: 978-0132575959
14th Edition
Authors: Alvin a. arens, Randal j. elder, Mark s. Beasley
Posted Date:
Students also viewed these accounting questions
-
You have been asked to perform substantive testing of the receivables account for Ocie's Manufacturing. You have been instructed to utilize sampling techniques. There are 3,000 customer accounts...
-
Transactions related to revenue and cash receipts completed by Tex Max Inc. during the month of March 2010 are as follows: Mar. 2. Issued Invoice No. 512 to Browne Co., $820. 4. Received cash from...
-
Transactions related to revenue and cash receipts completed by Starcom Inc. during the month of March 2006 are as follows: Mar. 2. Issued Invoice No. 512 to Conrad Co., $790. 4. Received cash from...
-
East Corp is a mature company and expects its sales and operating costs to be fixed (or unchanged) in perpetuity. It has sales of $524,000 and operating costs of $272,480. The firm has a tax rate of...
-
For flow over a flat plate with an extremely rough surface, convection heat transfer effects are known to be correlated by the expression of Problem 6.21. For airflow at 50 m/s, what is the surface...
-
Two aluminum-clad steel conductors are used to construct a two-wire transmission line. Let Al = 3.8 10 7 S/m, St = 5 10 6 S/m, and St = 100H/m. The radius of the steel wire is 0.5 in., and the...
-
Baer Inc. has been manufacturing its own shades for its table lamps. The company is currently operating at 100% of capacity, and variable manufacturing overhead is charged to production at the rate...
-
Marcy Miller, a divisional manager, is evaluated based on return on investment. In the last quarter her division achieved a 12% margin and a 15% return on investment. The division had $3,000,000 in...
-
QUESTION 8 The selling price is $5 per unit. The variable cost per unit is $3 per unit. Total fixed costs are $150,000. What is the break-even point in dollars? 10 poin $600,000 $375,000 $300,000...
-
Assume that Timberline Corporation has 2023 taxable income of $240,000 for purposes of computing the 179 expense. It acquired the following assets in 2023: What is the maximum amount of 179 expense...
-
A year ago, the exchange rate of the foreign currency Australia dollar (A$) against the home currency Malaysian ringgit (MYR) was MYR 5.4488/A$. After one year, point H in the following graph...
-
In the month of March, Green Meteor Co. had the following inventory information and transactions: March 1 Beginning Inv. 200 Units @ $70 per unit March 2 Purchased 84 Units @$65 per unit March 31...
-
What skill do you think HR managers and line managers need to develop in order to deal with conflict in the workplace ?
-
1)You are the CEO of a company and you are considering entering into an agreement to have your company buy another company. CEOs shape strategies and often make final M&A decisions. As a CEO, you...
-
How has marketing communications changed, and what has caused the changes required in a successful integrated marketing communications plan?
-
Assignment 04: Thunderbird uses a job - order cost system and applies factory overhead to production orders on the basis of direct labor costs. The overhead rates for 19x9 are 200 percent for...
-
Brash Corporation initiated a new corporate strategy that fixesits annual dividend at ?$2.93 per share forever. If the? risk-freerate is 4.9?% and the risk premium on? Brash's stock is 11.4? 2 answers
-
Banner Company acquires an 80% interest in Roller Company for $640,000 cash on January 1, 2013. The NCI has a fair value of $160,000. Any excess of cost over book value is attributed to goodwill. To...
-
Following are several decisions that the auditor must make in an audit of a nonpublic company. Letters indicate alternative conclusions that could be made. Required a. Identify the sequence in which...
-
Explain why most auditors consider the receipt of goods and services the most important point in the acquisition and payment cycle.
-
Explain why many people think of internal auditors as the primary group responsible for conducting operational audits.
-
Feng Company installs a computerized manufacturing machine in its factory at the beginning of the year at a cost of $42,300. The machines useful life is estimated at 10 years, or 363,000 units of...
-
In early January 2004, LabTech purchases computer equipment for $147,000 to use in operating ac tivities for the next four years. It estimates the equipments salvage value at $30,000. Prepare tables...
-
Cemer Manufacturing purchases a large lot on which an old building is located as part of its plans to build a new plant. The negotiated purchase price is $225,000 for the lot plus $120,000 for the...
Study smarter with the SolutionInn App