Since 2003, OTS has recognised the importance of technology in increasing its productivity and efficiency. The Group has placed increasing reliance on its ERP system to connect every step of the manufacturing process - from research and development to order taking, product development, sourcing, food processing, packaging and delivery. The ERP modules that have been implemented enable management to track and monitor every aspect of its manufacturing process and products with speed, accuracy and ease. Given the recent spate of ransomware attacks, the OTS audit engagement partner is concerned about the risks to the Group's business, operations, accounting records and financial statements. He requests the RSM IT audit specialist supporting the OTS financial statement audit engagement to analyse the risks and their impact, and ensure that the procedures performed on the OTS network and computerised information systems will address these risks. Assume you are the supporting RSM IT audit specialist. As at 30 April 2021, prepare a CIS audit plan for the OTS audit engagement, to document the following matters:

 

Design the analytics procedures that will be performed to gather substantive audit evidence relating to: 

• Accuracy of inventory purchase cost recorded as at 30 June 2021. 

• Aging of inventory items as at 30 June 2021. 

• Any potential excess balance of inventory (raw materials, WIP and finished goods) as at 30 June 2021. 

The procedures designed must identify the data to be tested, and the specific ACL function(s) used to execute the procedure, e.g. Join, Classify, Age, etc.