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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:

  1. a. What is (are) the assertion(s) being tested?
  2. b. What information are you comparing electronically for each assertion?
  3. c. What electronic evidence would represent a misstatement for each assertion?

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