This is someone else answer… The only thing I need is you to change the writing… so that it does not seem plagiarism

RUNNING HEAD: ACL PROJECT- HUSKY – AR AUDIT

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ACL PROJECT- HUSKY – AR AUDIT 8

Case Project: ACL Project- Husky Corp- AR Audit

Advance Auditing Theory and Application

February, 14th 2020

Week 5th Case: ACL Project- Husky Corp- AR Audit

Accounts receivable are an important asset in companies as it is part of the financial stability that a company can have, so it is necessary to keep them up-to-date and in order to identify the time established to be collected. The article “Audit Procedures – Receivable And Sales” by Zuca, S. (2013), points out that it is very important to keep the accounts receivable account up to date as these are linked to the sales accounts and in an audit if the auditor resumes the validity of the accounts receivable basically also validates the sales, it is saying the evidence collected from accounts receivable supports sales; The procedure is normally analytical, being usually the first step, to verify that the population being tested matches the general ledger.( Zuca, S. 2013). Sometimes auditors discover anomalies in accounts receivable reports and unfortunately those anomalies can become fraud perpetrated by an employee of the company, which makes it an occupational fraud. According to the ACFE in the 2018 Report to the Nations, the occupational fraud is the greatest and most prevalent threat, perpetrated by an officer, executive, or employee of an organization, basically an attack against the organization for the personal benefit of the perpetrator who had the opportunity, pressure and rationalization of committing fraud.(ACFE, 2018).

The purpose of this paper is to analyze the information in case 9-87, referring to Husky Corporation, in which accounts are being audited for payment of December 31, 2013. Within the information provided is the balance of the general ledger which is $ 4,263, 919.52; the Unpaid Invoice, Shipping, and credit limit files corresponding to the year 2013 were also provided. The information will be analyzed using the ACL software, with reports that will indicate if the quantity of the general ledger matches the statistical report of the unpaid file invoices, if there are excess credit limits, if there are sales made in 2013 but the shipment made until 2014, and analyze the aging of the transactions.

Audit Program step 1

In this step the goal is to foot the file and identify if the quantity in the ledger is equal. According to the general ledger receivable account until Dec. 31, 2013 the total amount was $ 4,263,919.52, and the result using the ACL software with a statistic report reflects 199 positive transactions with a total of $ 4,286,579.26 which give a transaction average of $ 21 , 540.60; a negative transaction of $ -22,659.74 for a total of 200 transactions is also noted, with a total amount between the two of $ 4,263,919.52, said amount is consistent with the amount of the general AR ledger 2013. As additional data the highest amount in a transaction was of $ 155,198.43 and the lowest of $ -22,659.74.

Audit Program Step 2

This analysis is to identify balances in the accounts of the clients greater than the credit that has been granted to them. For the analysis the Unpaid file was used, with a summary in the CUSTNUM field and totaling the AMOUNT field, which will result in a new file called Customer Balances, then proceed to make a join with the Credit Limit file. The result obtained from the analysis shows that there are 6 clients that exceed the credit limits. Customer’s number 141,166, 181, and 184 have a credit limit of $ 150,000; customer number 121 has a credit limit of $ 50,000; and surprisingly, customer number 174 has registered as a credit limit the amount of “0”, which has an outstanding balance of $ 83,738.44.

Audit Program Step 3

The objective of this step is to perform a cuttof sales test. In this analysis a join was made with the Unapaid and Shipping files, in order to create a file called Cutoff Errors to make an extraction using the ShipNum> 62050 expression, since according to the information verified by the auditor the 62050 was the last shipping number used. As a result of the analysis, three transactions were obtained which are: 62069 from customer number 202, 62070 from customer number 214, and 62071 from customer number 45; The three transactions have invoice date of 12/30/13 with a ship date in January 2014.

Audit Program Step 4

With this analysis I use the Unpaid file with the Age command in the InvDate field; using an aging period of 0 to 45. The result obtained shows 196 transactions with an aging period of 0-45, which represents 98% of the transactions with a total amount of $ 4,184,902.39; and 4 transactions with an aging> 45, which represents 2% of the transactions with an amount of $ 79,017.13. The four transactions are from customer’s number: 168, 50,105,162.

Audit Program Step 5

The objective of this analysis is to stratify or group the client’s beams and help determine which balances to confirm. The Customer Balances file was used, using the Amount field with a minimum of 0 and a maximum of 50,000. The report showed the stratification of balances with an interval of 0-4,999.99. The customer number 124 has a negative balance of $ -22,025.22. The stratified groups with the highest percentage of transactions are: $ 20,000- $ 24,999.99 with 27 transactions representing 19.42% of the transactions, and the group of> $ 50,000 with 24 representing 17.27%.

In conclusion with the results obtained in the 5 audit program step, transactions with irregularities that may be risky have been observed; such as: results in step 2 where 6 clients have balances greater than the stipulated credit limit, of those 5 clients are in the stratified group with amounts greater than $ 50,000, these clients are: 141,166,181,184, and 174 which also has an irregularity which consists of a negative balance of $ -22,659.74; The sixth customer of this group with number 162 has unpaid invoices over 45 days old. It would be advisable to make deeper analyzes focused on customers that exceed the limit, customers with sales made in 2013 and delivered in 2014, and invoices without paying over 45 days old, not forgetting the customer

References

ACFE (2018). 2018 Report to the Nations. Retrieved from:

https://s3-us-west-2.amazonaws.com/acfepublic/2018-report-to-the-nations

Johnstone K., Gramling AQ., Rittenberg L. (2014) Auditing. 9Th Edition. Chapter 6th. Mason,

OH.South-Western Cengage Learning.

Zuca, S. (2013). AUDIT PROCEDURES – RECEIVABLE AND SALES. Romanian Economic

and Business Review, , 184-194. Retrieved from

https://search.proquest.com/docview/1509201794?accountid=35796