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