Using the ACL software included with your textbook, please complete ACL Case 6-83 covered on page 264 of your textbook. I would suggest completing the tutorial first so you are familiar with how to use the software. I have also included a commands demo file that will be a good reference document. You will type up your analysis of evidence you obtained to complete ACL Case 6-83 in a Microsoft Word file so please ignore requirement 3c. As part of your response be sure include how you determined the most appropriate procedures needed to collect audit evidence for this project.
Below is the Microsoft Word document that you will submit to me with your results. There are additional ACL instructions in this which will help you in completing the assignment. I have highlighted the areas you will need to complete which are the results under each of the requirements:
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Some areas you will be considering include:
1) Is any one over the maximum grant allowed?
2) Is any student using the same social security number?
3) Is the same person using a different social security number?
4) Is any student receiving a grant that should not be receiving a grant
ACL-
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Solutions for ACL Appendix Cases
Solutions for ACL Appendix Cases
ACL-
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Case
1
– Fraud (9-6
4
)
ACL icons, commands, and equations in bold, data files in italics.
In this project, ACL can be used to identify potential fraud in the Pell grant program. It can be used to identify:
1. Any student receiving more than the annual maximum grant ($3,125 is used in this case).
2. More than one student using the same social security number.
3. Any student using different social security numbers.
4. Any students receiving grants that should not be receiving grants.
It could also be used to recalculate the correct amount of grants for each term, but this is a lot of work and the results indicate that, except for rounding, nothing new is detected.
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Condition Number
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Approach
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To Begin
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Create a new project by clicking on the New Project icon or choose File, New, Project from the menu and give it the name Pella. Be sure to save the project on the medium that contains the data files.
Import the Pella file. Name it grants.
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1
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Objective: To check for a student getting more than $3,125 during one year.
Using the grants file (table):
1. The SSN field must be changed from Numeric to ASCII format. Choose Edit, Table Layout. Double click on SSN, click the down arrow next to Numeric, find and click on ASCII (above Numeric in the drop-down window), click the green arrow in the left margin and close this window by clicking the X in the upper right-hand corner of this window.
2. Choose Analyze, Summarize from the menu. Then choose the following:
Summarize on – SSN,
Subtotal fields – Amount
Other Fields –LAST, FIRST
Click on the output tab and file. Give the new file the name Student Totals.
Using the Student Totals file,create a filter with the expression Amount > 3125. Click OK.
(You will find 3 students here)
ACL2
3. Double click on the grants file in the left window to make it active. Create a filter with the expression Last = “Student 1 Last name” (insert student’s last name you found) OR Last = “Student 2 Last name” OR Last =“Student 3 Lastg name”. (Note: the name must be in quotations.) Click OK.
Results: Student findings and analysis
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2
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Objective: See if more than one person uses the same SSN.
Remove the filter to get the complete grant file:
1. Choose Data, Extract Data, If using the equation Term = 1. Name the file Term 1 in the window next to the To button
. Click OK.
2. Using the Term 1 file, choose Analyze, Look for Duplicates on SSN. Hold down the Ctrl key and click all fields to list them in the output. Click the Output tab at the top of the screen and select either “Screen” or “Print.” If you sent the output to the screen, the results can then be printed.
3. Repeat for Terms 2 & 3
Results: Student finding and analysis
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3
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Objective: See if the same person is using different SSNs.
Using the Extracted Files for Terms 1, 2, & 3 from Condition Number 2 above –
1. For each term check for duplicate last names, Analyze, Look for duplicates.
2. Sequence on Last and include all fields in the output to screen.
3. Scan each list of duplicate last names for duplicate first names.
Results: Student finding and analysis
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4
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Objective: See if anyone with a need code 5 got a grant.
Using the grants file:
Create a filter with the expression NEED = 5 AND AMOUNT > 0 (Put all of this in one equation).
Results: Student finding and analysis
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The items of potential fraud are:
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Condition
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Number
Condition
Social Security Number
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Name
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1
2
3
4
2
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RUNNING HEAD: ACL PROJECT- PELL GRANTS
1
ACL PROJECT- PELL GRANTS 8
Case Project: ACL Project- Pell Grants
Keiser University
Professor: Dr. Schmidt, CMA, CPA.
Advance Auditing Theory and Application
January 30th, 2020
Week 3 Case ACL Project – Pell Grants
Universities and Colleges offer scholarships to students with certain requirements, among them: low economic resources, good academic GPA, and full-time students. According to the article “The pell and the poor: A regression-discontinuity analysis of on-time college enrollment” by Rubin, R. B. (2011), it indicates that the costs of a higher education have risen in recent years, and these costs have to add books, housing, transportation, food, among others; hindering the economic capacity of low-income people access to vocational training, that is why the importance of pell grants, that is why students who aspire to higher education apply to receive these grants based on family or individual income, depending on the case of each applicant. (Rubin, R. B. (2011). Due to the demand of people who need financial help to study, pell grants have become a benefit that all students want. The control of the pell grant is managed by each institution that is why the institutions need to maintain a rigorous control to determine the applicability of each student and thus avoid a risk of fraud.
The purpose of this paper is to analyze the information provided in case 6-83 of the chapter in the book “Auditing” by Johnstone K., Gramling AQ., Rittenberg L. (2014), in which it is required that a the pell grants granted to students from different universities, where the maximum amount per student is $ 3125 per school year and a maximum amount of $ 1045 per semester; each situation is different since the pell grant program is offered depending on the financial need and the amount of credits the student takes, in this way the percentage of money that corresponds to each student is determined. The audit will be performed using the ACL (Audit Command Language) program. With the analysis of the databases, it will be determined if there are students receiving more help than they are allowed, duplicates in social security numbers or if there is the same person using different social security number, and if there is any student who does not qualify for the pell grant and yet he / she is getting it.
Condition Number 1 :
1. In this procedure the objective is to analyze if there are students with larger amounts per year limited to $ 3125. To perform this analysis, the Grant file was used by modifying the Social Security Number (SSN) field of numeric format to ASCII, to make a summary with the fields of SSN, Amount, Last, and, First; in this way a new file is created which will be called Student Totals. Using the student total file, 3 students were found with an amount greater than $ 3125.
2. 2. A filter was created with the expression Last = “student 1 Last Name” OR Last = “Student 2 Last Name” … and so on until you enter the last names of the nine students. As a result, a report of 27 transactions was obtained divided by 9 students.
Condition Number 2:
1. This procedure is to verify if more than one person is using or has the same social security number. The procedure was performed using the Grant file with an extract data using the equation TERM = 1, naming the report or file obtained “Term 1” and so on with the other terms (TERM = 2; Term = 3). The results were the following:
Term 1 was zero duplicated.
2. Term 2, two transactions were found, which consists of the same social security but different name, different schools.
3. Term 3, and found two transactions, which consists of the same social security but different name, different schools.
Condition Number 3
The objective of this analysis is to identify if there is a student who is using two different social security numbers. The procedure is to use the extracted files of Term 1, Term 2, and Term 3 of Condition 2. The analysis was done in duplicate last names, Sequence in the “Last” file and review each duplicate surname list for Identify if there were duplicate First names. The results were the following:
Term 1, zero duplicates.
Term 2, 12 duplicates of surnames were found.
Term 3, 13 duplicates of surnames were found.
The Sequence analysis showed zero sequence error detected in all terms and of all the 3 terms only one person was found sharing the same name and surname, but with different social security and different school.
Condition 4
The objective of this analysis is to identify if any student with the code 5 which means “0%” in financial need, that is to say, is not allowed to receive pell grant is receiving it. This analysis was carried out using the Grant file, with the expression NEED = 5 AND AMOUNT> 0, that is, any student with code 5 who has a quantity in that field greater than “0”. As a result, it was obtained that the student Manuel, Roy with social security number: 206098789, in school 4, term 3 and with status with code 5 received $ 1,041.06, which is the maximum that is granted to a student with code in NEED 1 per semester.
References
Johnstone K., Gramling AQ., Rittenberg L. ( 2014) Auditimg. 9Th Edition. Chapter 6th . Mason,
OH.South-Western Cengage Learning.
Rubin, R. B. (2011). The pell and the poor: A regression-discontinuity analysis of on-time
college enrollment. Research in Higher Education, 52(7), 675-692.
doi:http://dx.doi.org/10.1007/s11162-011-9215-6
