Plan a substantive test of purchase transactions using ADA as a substantive test. When planning the substantive test, identify the following:
1. What is (are) the assertion(s) being tested?
2. What information are you comparing electronically for each assertion?
3. What electronic evidence would represent a misstatement for each assertion?
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 (see Chapter 12) that involves electronic invoice presentment and payment (EIPP) for 90% of its purchase transactions. The following information is cap- tured electronically within this system. Database Vendor Master File Field Code Vendor_ID Vendor_ADD Data Type 6-digit number Text Data Input By Cloud 9 Cloud 9 Text Cloud 9 Field Description A unique identification number for each vendor Vendor's mailing address excluding city, state, post (zip) code City associated with Vendor_ADD State associated with Vendor_ADD Vendor post (zip) code Country associated with Vendor_ADD Routing number and account number for vendor Text Cloud 9 Text Vendor_CITY Vendor_STATE Vendor_PC Vendor_COUN Vendor_Bank Account Number Vendor Credit Limit Cloud 9 Text Cloud 9 Cloud 9 Numeric data Amount of credit extended by the vendor 9-digit number Cloud 9 EIPP Database Cloud 9 Vendor_ID EIPP_NO 6-digit number 14-digit number Cloud 9 and Vendor MM/DD/YYYY Cloud 9 PO_DATE PO_SHIP_ADD Text Cloud 9 Text Cloud 9 Text or number Cloud 9 Text Cloud 9 Cloud 9 Cloud 9 Cloud 9 Cloud 9 PO_CS PO_PC PO COUNTRY PO_PROD_CODE PO_PROD_QUANT PO_PROD_PRICE PO_ACCT TOTAL_ORD_PRICE ASN_DATE PROD_NO PROD_QUANT PROD_PRICE ASN_TOTAL ASN_TERMS 14-digit number 7-digit number $X,XXX.XX 5-digit number $XXX.XXX.XX MM/DD/YYYY 14-digit number 7-digit number $X.XXX.XX $XXX,XXX.XX Cloud 9 Vendor Vendor Vendor Vendor Vendor Vendor PP.P%/XX Text BILL_ADD BILL_CS Vendor Vendor Text A unique identification number for each vendor 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). Order date Shipping address for PO excluding city, state, post (zip) code PO_SHIP_ADD Post (zip) code for PO_SHIP_ADD Country associated with PO_SHIP_ADD Product number Inventory quantity ordered by Cloud 9 Price per unit for each item ordered by Cloud 9 Account charged based on ordering department Total price for the individual purchase order ASN date Unique inventory number Inventory quantity ordered by Cloud 9 Price for each item ordered by Cloud 9 Sum total of the vendor's advance shipping notice % discount allowed if paid within XX days from receiving date Billing address excluding city, state, post (zip) code City and state separated by a comma) associated with BILL_ADD Post (zip) code associated with BILL_ADD Country associated with BILL_ADD Bill of lading date Shipping address excluding city, state, post (zip) code City and state separated by a comma) associated with SHIP_ADD Post (zip) code associated with SHIP_ADD Country associated with SHIP_ADD Unique inventory number Inventory quantity shipped by vendor Date of receipt of goods Shipping address excluding city, state, post (zip) code City and state (separated by a comma) associated with SHIP_ADD Post (zip) code associated with SHIP_ADD Country associated with SHIP_ADD Unique inventory number of item received Quantity of inventory item received Date of recording the liability Unique inventory number on voucher Inventory quantity on voucher Price for each item on voucher Sum total of the liability on voucher Account charged with liability for purchase Date of payment Total amount of payment of invoice Text Vendor Vendor Text BILL_PC BILL_COUNTRY BL_DATE SHIP_ADD SHIP_CS MM/DD/YYYY Vendor Text Vendor Text Vendor Vendor Vendor SHIP_PC SHIP_COUNTRY SHIP_PROD_NO SHIP_QUANT REC_DATE REC ADD REC_CS 5-digit number Text 14-digit number 7-digit number MM/DD/YYYY Text Text Vendor Vendor Cloud 9 Cloud 9 Cloud 9 Cloud 9 Cloud 9 Cloud 9 Cloud 9 Cloud 9 Cloud 9 REC_PC REC_COUNTRY REC_PROD_NO REC_PROD_QUANT VOUCHER_DATE VCH_PROD_NO VCH_PROD_QUANT VCH_PROD_PRICE VCH_TOTAL VCH ACCT PAY_DATE TOTAL_PYMT_AMT 5-digit number Text 14-digit number 7-digit number MM/DD/YYYY 14-digit number 7-digit number $X,XXX.XX SXXX.XXX.XX 5-digit number MM/DD/YYYY $XXX,XXX.XX Cloud 9 Cloud 9 Cloud 9 Cloud 9 Cloud 9 Cloud 9
