Stabler Services: Using ACL in the Audit of Acquisitions Transactions

Answer all parts of these requirements on this page through page 8-31. It is more convenient to complete the assignment if you remove pages 8-27 through 8-31 now.

Stabler Services is a privately held services company located in Minneapolis that provides consulting services and conferences for small banks in the U.S. and Canada needing expertise in managing their banks. TM business has nine departments that are all in one location. Department 1 is the administrative department and is responsible for making sure the consulting and conference departments are able to operate effectively. Department 3 includes only part-time salespeople who travel away from Minnesota to attract new business. The other seven departments each offer a different type of service, but they each provide both consulting and conference services. Conferences are an essential part of the business because a conference fee is charged to each participant, which is a major source of revenue for Stabler. Conference information is also the primary way that departments solicit business.

You are auditing acquisitions for the year ended 12/31/14 and will be using three files that are already included in ACL in the Stabler Service project as tables. The tables are as follows, with information provided by the IT department in parentheses:

Stabler Acquisitions 2014 (320 records; total of invoices amounts $1,128,744.09)

Stabler_Chart_of_Accounts (20 records; only for acquisition-related accounts)

Stabler_ AP_Master_File (55 records)

Complete the following requirements using ACL:

Q 2. Use the Statistics command and list any information that appears unusual or you believe should be investigated further.

Answer:

Q 3. Determine if there are any missing vouchers or duplicate numbers.

Answer:

Q 4. Use Join or Relations to determine the account name for each chart of account number in the Stabler_Acquisitions_2014 table. Do the following using the combined table. For each one, state any concerns that you have for potential misstatements:

a. Review the account names and identify any monthly expense that is likely to be the same or similar and determine if the amounts are reasonable.

Account #:

Concern(s):

Account #:

Concern(s):

b. Evaluate whether the expenses charged to Department 1 are reasonable.

Account #:

Concern(s):

c. Evaluate if an expense charged to other departments should have been charged to Department 1.

Account #:

Concern(s):

Q 5. Review and evaluate the expenses for each department. Based on your evaluation identify any transactions you believe should be further investigated.

Answer:

Q 6. Determine if all vendor numbers included in the Stabler-Acquisitions-2014 table are also included in the Stabler_AP_Master_File table.

Answer:

Q 8. Which two vendors does Stabler do the most business with? Does this seem reasonable for the nature of their business?

Answer: