ACL Assignments 8e

46
ACL Assignments Overview The ACL bundled software comes with a tutorial, which is a PDF file entitled, “ACL in Practice.” The tutorial contains 7 Chapters and utilizes the sample data files that are included with the ACL software. In addition to the exercises imbedded within the ACL in Practice, the Messier/Glover/Prawitt team has created ACL problems for each chapter. The problems associated with Chapters 1 and 2 relate to the tutorial data files. A new data set entitled Roger Company, created for Messier/Glover/Prawitt, is introduced in Chapter 3. The Roger Company data set is used to solve the ACL end-of-chapter problems for Chapters 3-21, which are more focused on auditing concepts than are the exercises included in the tutorial. Each of the Chapters in the ACL in Practice file are matched with the Messier/Glover/Prawitt textbook Chapters 1 through 7. However, with a good understanding of ACL in Practice Chapters 1 – 4 (the PDF tutorial bundled with the software), students can successfully complete the ACL end-of-Chapter problems for Chapters 1 – 10 of the Messier/Glover/Prawitt textbook. The ACL in Practice Chapters 1-4 can be assigned independent of Messier/Glover/Prawitt textbook Chapters 1-4. For example, if an instructor would like to assign ACL end-of-Chapter problems for Chapter 6 of the Messier/Glover/Prawitt textbook, he or she would need to assign ACL in Practice Chapters 1-4 any time prior to assigning the ACL end-of-Chapter problems associated with Chapter 6 of the textbook. Students generally require between 1 ½ to 2 ½ hours to complete Chapters 1-4 of the ACL in Practice. Certain ACL problems at the end of Chapters 11-21 require an understanding of the concepts and skills that are taught in ACL in Practice Chapters 5 – 7. The problems that require completion of tutorial(s) beyond ACL in Practice Chapter 4 are so indicated within the problems. Jump to specific Chapter (Hold down the CTRL key and click on a link below) The McGraw-Hill Companies, Inc., 2012 ACL Assignments ACL-1

description

acl assignment and exercises

Transcript of ACL Assignments 8e

Page 1: ACL Assignments 8e

ACL Assignments Overview

The ACL bundled software comes with a tutorial, which is a PDF file entitled, “ACL in Practice.” The tutorial contains 7 Chapters and utilizes the sample data files that are included with the ACL software. In addition to the exercises imbedded within the ACL in Practice, the Messier/Glover/Prawitt team has created ACL problems for each chapter. The problems associated with Chapters 1 and 2 relate to the tutorial data files. A new data set entitled Roger Company, created for Messier/Glover/Prawitt, is introduced in Chapter 3. The Roger Company data set is used to solve the ACL end-of-chapter problems for Chapters 3-21, which are more focused on auditing concepts than are the exercises included in the tutorial.

Each of the Chapters in the ACL in Practice file are matched with the Messier/Glover/Prawitt textbook Chapters 1 through 7. However, with a good understanding of ACL in Practice Chapters 1 – 4 (the PDF tutorial bundled with the software), students can successfully complete the ACL end-of-Chapter problems for Chapters 1 – 10 of the Messier/Glover/Prawitt textbook. The ACL in Practice Chapters 1-4 can be assigned independent of Messier/Glover/Prawitt textbook Chapters 1-4. For example, if an instructor would like to assign ACL end-of-Chapter problems for Chapter 6 of the Messier/Glover/Prawitt textbook, he or she would need to assign ACL in Practice Chapters 1-4 any time prior to assigning the ACL end-of-Chapter problems associated with Chapter 6 of the textbook. Students generally require between 1 ½ to 2 ½ hours to complete Chapters 1-4 of the ACL in Practice.

Certain ACL problems at the end of Chapters 11-21 require an understanding of the concepts and skills that are taught in ACL in Practice Chapters 5 – 7. The problems that require completion of tutorial(s) beyond ACL in Practice Chapter 4 are so indicated within the problems.

Jump to specific Chapter(Hold down the CTRL key and click on a link below)

Chapter 1 Chapter 8 Chapter 15

Chapter 2 Chapter 9 Chapter 16

Chapter 3 Chapter 10 Chapter 17

Chapter 4 Chapter 11 Chapter 18

Chapter 5 Chapter 12 Chapter 19

Chapter 6 Chapter 13 Chapter 20

Chapter 7 Chapter 14 Chapter 21

The McGraw-Hill Companies, Inc., 2012ACL Assignments ACL-1

Page 2: ACL Assignments 8e

Chapter 1 ACL Exercises and Problems Return to MenuFor technical assistance with ACL, please contact technical support: 604-669-4225; [email protected]; http://www.acl.com/supportcenter/

Tutorial Assignment (Estimated time to complete tutorial Chapter 1 is 15-20 minutes)

Read Chapter 1: Introducing Metaphor Corporation of the ACL in Practice

(Note: ACL software is bundled with each copy of the textbook. Insert the ACL disk and follow the instructions to install the software.)

To access the ACL in Practice:1. After installing ACL, open the Start Menu on your computer2. Click All Programs3. Find the “ACL Desktop Education Edition” folder icon4. Single click or place your mouse on the “ACL Desktop Education Edition” folder

icon to display the folder contents (i.e., ACL Desktop Education Edition, ACL Help, ACL in Practice, ACL Utility, Readme).

5. Click on “ACL in Practice” to open the tutorial6. Alternatively, you can navigate directly to the file, ACL_in_Practice.pdf, in the folder

where ACL data and the tutorial are saved on your hard drive (e.g., C:\ACL Data\Sample Data Files)

(Note: Unless otherwise instructed, please submit your answers to the following problems to your instructor in a word processing document.)

Messier/Glover/Prawitt End-of-Chapter 1, ACL ProblemsProblem 1Briefly describe Metaphor’s credit card policy.

Problem 2Looking at Figure 1-3 in Chapter 1 of your auditing textbook, during which stages of the “financial statement audit process” might ACL be the most useful?

Problem 3Go to the ACL internet website by opening ACL Desktop Education Edition and clicking on ACL Homepage under ACL Weblinks. While on the website, click on ACL Solutions under the Solutions tab. Read that page and explain how ACL can help in an audit.

The McGraw-Hill Companies, Inc., 2012ACL-2 Auditing & Assurance Services, 8/e

Page 3: ACL Assignments 8e

Chapter 2 ACL Exercises and Problems Return to MenuFor technical assistance with ACL, please contact technical support: 604-669-4225; [email protected]; http://www.acl.com/supportcenter/

Tutorial Assignment (Estimated time to complete is tutorial Chapter 2 is 20-30 minutes.)

Read and complete the tasks in Chapter 2: Examine Employee Data of the ACL in Practice file.

Hint: Staying actively involved while completing the tutorial assignment will help you to complete the ACL problems more efficiently. You may find it helpful to review the assigned problems before completing the ACL in Practice assignment.

To access the ACL in Practice:1. After installing ACL, open the Start Menu on your computer2. Click All Programs3. Find the “ACL Desktop Education Edition” folder icon4. Single click or place your mouse on the “ACL Desktop Education Edition” folder

icon to display the folder contents (i.e., ACL Desktop Education Edition, ACL Help, ACL in Practice, ACL Utility, Readme).

5. Click on “ACL in Practice” to open the tutorial6. Alternatively, you can navigate directly to the file, ACL_in_Practice.pdf, in the folder

where ACL data and the tutorial are saved on your hard drive (e.g., C:\ACL Data\Sample Data Files)

7. Complete the tasks in the ACL in Practice, Chapter 2

(Note: Unless otherwise instructed, please submit your answers to the following exercises and problems to your instructor in a word processing document.)

Chapter 2 Tutorial Exercises: 1-5There are five exercises at the end of the Chapter 2 tutorial from the ACL in Practice file (PDF file that is bundled with the software). Your instructor will inform you which, if any, of the exercises to complete and submit.

Messier/Glover/Prawitt End-of-Chapter 2, ACL ProblemsProblem 1 Create a filter to display the employees at Metaphor Company that were hired after January 1, 2000 and who make $60,000 per year or more in salary. How many records result from the filter described? Include the expression you used to create the filter in your solution.

Problem 2 Use ACL to compute how much was paid in commissions to Metaphor Agents (Comm 2002 column, Agents_Metaphor table).

Problem 3 How does computing the amount paid in commissions to Metaphor agents in Problem 2 help an auditor verify the management assertion of completeness?

The McGraw-Hill Companies, Inc., 2012ACL Assignments ACL-3

Page 4: ACL Assignments 8e

Chapter 3 ACL Exercises and Problems Return to MenuFor technical assistance with ACL, please contact technical support: 604-669-4225; [email protected]; http://www.acl.com/supportcenter/

Tutorial Assignment (Estimated time to complete the Chapter 3 tutorial is 20-30 minutes.)

Read and complete the tasks in Chapter 3: Set up Your Project of the ACL in Practice file.

Hint: Staying actively involved while completing the tutorial assignment will help you to complete the ACL problems more efficiently. You may find it helpful to review the assigned problems before completing the ACL in Practice exercises.

For instructions on accessing the ACL in Practice please see earlier assignments.

(Note: Unless otherwise instructed, please submit your answers to the following exercises and problems to your instructor in a word processing document.)

Chapter 3 Tutorial Exercises: 1-2There are two exercises within the Chapter 3 tutorial from the ACL in Practice file (PDF file that is bundled with the software). Your instructor will inform you which, if any, of the exercises to complete and submit.

Messier/Glover/Prawitt End-of-Chapter 3, ACL ProblemsProblem 1Edit the layout of the Employee_List table to form a new column for total compensation (salary plus bonus). Now determine how many employees earned more than $85,000 in total compensation in 2002.

Problem 2Roger Company is a mid-size company located in the Midwest that handles the distribution of various home and garden products. You are part of the engagement team assigned to audit the financial statements of Roger Company. Roger Company has been a client of your firm for many years, and your firm has rarely encountered any problems with them. However, the engagement partner has made it very clear to you that there is no room for mistakes. Your tasks as one of the auditors on the engagement are outlined below and in other problems of the remaining chapters.

Please download the Roger Company ACL files, found under Course-Wide Content on the Student Edition of your text’s Online Learning Center. The Roger Company files are already in ACL format; however the files must first be “unzipped.” After unzipping the files, click on FILE from the menu toolbar and use the OPEN PROJECT command to navigate to where you have saved the “Roger Company 8e” file and open the project.

The McGraw-Hill Companies, Inc., 2012ACL-4 Auditing & Assurance Services, 8/e

Page 5: ACL Assignments 8e

Net income before taxes at Roger Company is stable, predictable, and representative of its size. Thus, the auditors at Roger Company calculate materiality to be 5 percent of net income before taxes. Net income before taxes at Roger Company for fiscal 2011 is $1,388,500. Determine materiality for the audit of Roger Company’s 2011 financial statements. Use ACL to determine if the reported AR account balance, $487,000, is materially different from the detailed files in Rogers_Company_AR table. Define tolerable misstatement as 60 percent of materiality. What might cause differences between the number reported in the financial statements and the details in the file?

Problem 3As a quality control procedure, management at Roger Company reviews each approved vendor at least once a year. In the reviews, management compares pricing across vendors, retests products being purchased from vendors to ensure they meet quality control standards, and performs testing to ensure purchasing personnel are not inappropriately favoring a vendor or potentially colluding with vendors (e.g., receiving kickbacks from the vendors). Use ACL to check the Roger_Company_Vendors table to make sure each vendor has been reviewed sometime since January 1, 2011.

1. Open the Roger_Company_Vendors table2. Click on the Edit View Filter button to open the Edit view filter dialogue box

3. In the Available Fields list, double-click on the Last_Review field4. Click on the “<” sign5. Click on the Date button to display the date selector6. Click on the down arrow, find January 1, 2011, click on it, and click OK7. Click OK8. Which vendors have not been reviewed since January 1, 2011? When was the last review

for those vendors?

The McGraw-Hill Companies, Inc., 2012ACL Assignments ACL-5

Page 6: ACL Assignments 8e

Chapter 4 ACL Exercises and Problems Return to MenuFor technical assistance with ACL, please contact technical support: 604-669-4225; [email protected]; http://www.acl.com/supportcenter/

Tutorial Assignment (Estimated time to complete the Chapter 4 tutorials is 20-30 minutes.)

Read and complete the tasks in Chapter 4: Begin Your Analysis of the ACL in Practice file.

Hint: Staying actively involved while completing the tutorial assignment will help you to complete the ACL problems more efficiently. You may find it helpful to review the assigned problems before completing the ACL in Practice assignment.

For instructions on accessing the ACL in Practice please see earlier assignments.

(Note: Unless otherwise instructed, please submit your answers to the following exercises and problems to your instructor in a word processing document.)

Chapter 4 Tutorial Exercises: 1-8There are eight exercises at the end of the Chapter 4 tutorial from the ACL in Practice file (PDF file that is bundled with the software). Your instructor will inform you which, if any, of the exercises to complete and submit.

Messier/Glover/Prawitt End-of-Chapter 4, ACL ProblemsAs introduced above in the ACL problems for Chapter 3, Roger Company is a mid-size company located in the Midwest that handles the distribution of various home and garden products. You are part of the engagement team assigned to audit the financial statements of Roger Company. Roger Company has been a client of your firm for many years, and your firm has rarely encountered any problems with them. However, the engagement partner has made it very clear to you that there is no room for mistakes. Your tasks as one of the auditors on the engagement are outlined below and in other problems of the remaining chapters.

The McGraw-Hill Companies, Inc., 2012ACL-6 Auditing & Assurance Services, 8/e

Page 7: ACL Assignments 8e

Please download the Roger Company ACL files, if you haven’t already. They are found under Course-Wide Content on the Student Edition of your text’s Online Learning Center. See instructions for opening the Roger Company files in the Chapter 3 assignment above.

Problem 1Roger Company has a policy that their allowance for uncollectible accounts should be 50% of the amount in the 60-90 day past due category plus 75% of the amount in the >90 day past due category as of the reporting date (in this case December 31. Use the Roger Company AR table in ACL and the Analyze >> Age command to re-compute the allowance for uncollectible accounts. In addition to re-computing the allowance for uncollectible accounts, report the results of the aging table that you are asked to complete.

1. Once in the Roger Company AR Table, click the Analyze drop down menu. 2. Click Age. 3. In the Age dialog box, click the Age On button and make sure Due_Date is the selected

field. Click OK4. Change the cutoff date to December 31, 2011. 5. In the Aging Periods box, delete the numbers 10000 and 120 so that your table will

compute a >90 day past due total. 6. Highlight the Amount field under the Subtotal Fields column. 7. Click OK.

Problem 2Assuming no cash is collected on past due accounts, how much will be more than 60 days past due as of January 31, 2012?

The McGraw-Hill Companies, Inc., 2012ACL Assignments ACL-7

Page 8: ACL Assignments 8e

Chapter 5 ACL Exercises and Problems Return to MenuFor technical assistance with ACL, please contact technical support: 604-669-4225; [email protected]; http://www.acl.com/supportcenter/

Tutorial Assignment (Estimated time to complete is 30-40 minutes.)

Read and complete the tasks in Chapter 5: Examine Expense Patterns of the ACL in Practice file.

Hint: Staying actively involved while completing the tutorial assignment will help you to complete the ACL problems more efficiently. You may find it helpful to review the assigned problems before completing the ACL in Practice assignment.

For instructions on accessing the ACL in Practice please see earlier assignments.

(Note: Unless otherwise instructed, please submit your answers to the following exercises and problems to your instructor in a word processing document.)

Chapter 5 Tutorial Exercises: 1-6There are six exercises (five within the chapter, one at the end) in the Chapter 5 tutorial from the ACL in Practice file (PDF file that is bundled with the software). Your instructor will inform you which, if any, of the exercises to complete and submit.

Messier/Glover/Prawitt End-of-Chapter 5, ACL ProblemsAs introduced above in the ACL problems for Chapter 3, Roger Company is a mid-size company located in the Midwest that handles the distribution of various home and garden products. You are part of the engagement team assigned to audit the financial statements of Roger Company. Roger Company has been a client of your firm for many years, and your firm has rarely encountered any problems with them. However, the engagement partner has made it very clear to you that there is no room for mistakes. Your tasks as one of the auditors on the engagement are outlined below and in other problems of the remaining chapters.

Please download the Roger Company ACL files, if you haven’t already. They are found under Course-Wide Content on the Student Edition of your text’s Online Learning Center. See instructions for opening the Roger Company files in the Chapter 3 assignment above.

Problem 1How many inventory items at Roger Company have a market value that exceeds $10,000? What is the total market value of those items? How many inventory items at Roger Company have a value-at-cost in excess of $10,000? What is the total value-at-cost of those items?

Problem 2Use information from Roger Company to determine how many inventory items have a market value lower than their original value-at-cost. What is the total market value of those items? What is the total value-at-cost of those items?

The McGraw-Hill Companies, Inc., 2012ACL-8 Auditing & Assurance Services, 8/e

Page 9: ACL Assignments 8e

Chapter 6 ACL Exercises and Problems Return to MenuFor technical assistance with ACL, please contact technical support: 604-669-4225; [email protected]; http://www.acl.com/supportcenter/

Tutorial Assignment (Estimated time to complete is 40-60 minutes)

Read and complete the tasks in Chapter 6: Analyze Transactions of the ACL in Practice file.

Hint: Staying actively involved while completing the tutorial assignment will help you to complete the ACL problems more efficiently. You may find it helpful to review the assigned problems before completing the ACL in Practice assignment.

For instructions on accessing the ACL in Practice please see earlier assignments.

(Note: Unless otherwise instructed, please submit your answers to the following exercises and problems to your instructor in a word processing document. Roger Company files can be downloaded from the Course-Wide Content on the Student Edition of your text’s Online Learning Center.)

Chapter 6 Tutorial Exercises: 1-5There are five exercises at the end of the Chapter 6 tutorial from the ACL in Practice file (PDF file that is bundled with the software). Your instructor will inform you which, if any, of the exercises to complete and submit.

Messier/Glover/Prawitt End-of-Chapter 6, ACL ProblemsAs introduced above in the ACL problems for Chapter 3, Roger Company is a mid-size company located in the Midwest that handles the distribution of various home and garden products. You are part of the engagement team assigned to audit the financial statements of Roger Company. Roger Company has been a client of your firm for many years, and your firm has rarely encountered any problems with them. However, the engagement partner has made it very clear to you that there is no room for mistakes. Your tasks as one of the auditors on the engagement are outlined below and in other problems of the remaining chapters.

The McGraw-Hill Companies, Inc., 2012ACL Assignments ACL-9

Page 10: ACL Assignments 8e

Please download the Roger Company ACL files, if you haven’t already. They are found under Course-Wide Content on the Student Edition of your text’s Online Learning Center. See instructions for opening the Roger Company files in the Chapter 3 assignment above.

Problem 1After reviewing a list of parties related to Roger Company, you notice that the customers with customer numbers 803882 and 512198 are related to the owners of the company. Please use the Roger_Company_AR table to determine the amount of accounts receivable that relates to sales made to these related-party customers. What percent of total accounts receivable are made up of sales to these two related-party customers?

Problem 2As part of the audit of Accounts Payable, you want to identify all invoices (Invoice_Amount) greater than $50,000 so that you can vouch the transaction to original documentation (i.e., approved purchase order, receiving records). Use ACL to identify all Accounts Payable invoices greater than $50,000 and compute the total value of those transactions. Why is it important for auditors to determine if large purchases are properly authorized?

The McGraw-Hill Companies, Inc., 2012ACL-10 Auditing & Assurance Services, 8/e

Page 11: ACL Assignments 8e

Chapter 7 ACL Exercises and Problems Return to MenuFor technical assistance with ACL, please contact technical support: 604-669-4225; [email protected]; http://www.acl.com/supportcenter/

Tutorial Assignment (Estimated time to complete is 20-30 minutes)

Read and complete the tasks in Chapter 7: Validate, Correct, and Extract Data of the ACL in Practice file.

Hint: Staying actively involved while completing the tutorial assignment will help you to complete the ACL problems more efficiently. You may find it helpful to review the assigned problems before completing the ACL in Practice assignment.

For instructions on accessing the ACL in Practice please see earlier assignments.

(Note: Unless otherwise instructed, please submit your answers to the following exercises and problems to your instructor in a word processing document. Roger Company files can be downloaded from the Course-Wide Content on the Student Edition of your text’s Online Learning Center.)

Chapter 7 Tutorial Exercises: 1-7There are seven exercises (3 within the chapter and 4 at the end) in Chapter 7 tutorial from the ACL in Practice file (PDF file that is bundled with the software). Your instructor will inform you which, if any, of the exercises to complete and submit.

Messier/Glover/Prawitt End-of-Chapter 7, ACL ProblemsAs introduced above in the ACL problems for Chapter 3, Roger Company is a mid-size company located in the Midwest that handles the distribution of various home and garden products. You are part of the engagement team assigned to audit the financial statements of Roger Company. Roger Company has been a client of your firm for many years, and your firm has rarely encountered any problems with them. However, the engagement partner has made it very clear to you that there is no room for mistakes. Your tasks as one of the auditors on the engagement are outlined below and in other problems of the remaining chapters.

The McGraw-Hill Companies, Inc., 2012ACL Assignments ACL-11

Page 12: ACL Assignments 8e

Please download the Roger Company ACL files, if you haven’t already. They are found under Course-Wide Content on the Student Edition of your text’s Online Learning Center. See instructions for opening the Roger Company files in the Chapter 3 assignment above.

Problem 1Roger Company’s policy is to not ship goods unless a valid purchase order has been received. However, based on information obtained during your walk through to confirm your understanding of processes and controls, you learned that occasionally a rush order is received via telephone and the goods are shipped before receiving the purchase order. Rush orders are only processed for existing customers. When rush orders are received the sales person taking the order completes a “Rush Order” form which is then approved by the sales department supervisor. The “Rush Order” form is then attached to the purchase order when it is received and the details of the two forms (i.e., product and quantity) are compared. To test the effectiveness of the controls around rush orders, you want to identify all instances where product is shipped before a purchase order is received. Using the Roger Company shipping file, determine the number of invoices related to orders that were shipped before a purchase order was received.

Problem 2In discussions with the order fulfillment and shipping departments, you learn that it is common for a partial or “split” shipment to go out because of an insufficient quantity of items in stock to fulfill the customer order. However, controls should prohibit shipping a higher quantity than was ordered. Using information from Roger Company’s shipping file, determine how many records contain fields where the quantity shipped exceeds the quantity ordered.

The McGraw-Hill Companies, Inc., 2012ACL-12 Auditing & Assurance Services, 8/e

Page 13: ACL Assignments 8e

Chapter 8 ACL Problems Return to MenuFor technical assistance with ACL, please contact technical support: 604-669-4225; [email protected]; http://www.acl.com/supportcenter/

(Note: Unless otherwise instructed, please submit your answers to the following problems to your instructor in a word processing document.)

Messier/Glover/Prawitt End-of-Chapter 8, ACL ProblemsAs introduced above in the ACL problems for Chapter 3, Roger Company is a mid-size company located in the Midwest that handles the distribution of various home and garden products. You are part of the engagement team assigned to audit the financial statements of Roger Company. Roger Company has been a client of your firm for many years, and your firm has rarely encountered any problems with them. However, the engagement partner has made it very clear to you that there is no room for mistakes. Your tasks as one of the auditors on the engagement are outlined below and in other problems of the remaining Chapters.

Please download the Roger Company ACL files, if you haven’t already. They are found under Course-Wide Content on the Student Edition of your text’s Online Learning Center. See instructions for opening the Roger Company files in the Chapter 3 assignment above.

Problem 1Use ACL to determine the sample size an auditor should use for attributes sampling given the criteria listed below:

1. With any ACL project (e.g., Roger Company) open, choose Sampling on the menu toolbar

2. Click on Calculate Sample Size3. Choose the Record option

Confidence is 95 Population is 1000 Upper Error Limit (%) is 8 (this is tolerable error) Expected Error Rate (%) is 3

4. Click Calculate5. What is the recommended sample size?

Problem 2How would the sample size change if all sample-size inputs listed in Problem 1 stayed the same with the exceptions listed below? Please evaluate each item independently by resetting the inputs to those listed in Problem 1 and changing only the one factor listed in each item below. (Hint: If you use the Calculate button rather than the OK button the sample size window will stay open).

a. Confidence dropped to 90 percent?b. Population increased to 500,000?c. Expected Error Rate (%) increased to 4?d. Upper Error Limit (%) decreases to 7?e. Upper Error Limit (%) increases to 15?

The McGraw-Hill Companies, Inc., 2012ACL Assignments ACL-13

Page 14: ACL Assignments 8e

Problem 3Using your results from Problem 2 above:

a. Which of the following four input factors—confidence, population, upper error limit, or expected error rate—has the smallest effect on the sample size?

b. Which two factors appear to have the greatest effect on sample size? c. Go into ACL’s sampling size tool and input the factors listed in Problem 1 and

then experiment with increasingly larger expected error rates. What happens as the expected error rate is nearly as large as the upper error limit or tolerable error? Why does this happen?

Problem 4For the following three control attributes, you want to be 90 percent confident that the population deviation rate does not exceed 7.5 percent.

Attribute 1-The purchase order was approved (purchasing department stamp provides evidence)Attribute 2-The purchase order, receiving report, and vendor invoice are included in each voucher packetAttribute 3-The accounts payable department compared product and quantities across the three documents (initials by an accounts payable clerk and auditor reperformance provide evidence)

You tested a sample of 52 voucher packages and discovered the following deviations: Attribute 1: 2 deviations Attribute 2: 1 deviation Attribute 3: 0 deviations

With any ACL project open (e.g., Roger Company) evaluate the results of your testing by:1. Select Sampling >> Evaluate Error2. Make sure Record is the selected sample type3. Enter the applicable parameters (e.g., Confidence is 90 and Sample Size is 52, Number

of Errors or deviations listed above)4. Click OK

What is the upper error limit frequency for each attribute?

Based on the results of your controls testing, which controls are considered effective? Please explain why or why not?

Problem 5Use ACL to complete problems 8-27 and 8-28 in your book. In ACL, “upper error limit” is the same as “tolerable deviation rate” and “expected error rate” is the same as “expected population deviation rate.” For problem 8-27, does the population amount you enter change the results? For 8-28, use the sample sizes computed by ACL in 8-27. ACL’s sample sizes and upper error limit frequency will differ from those computed using the tables in the textbook. Did the differences lead to different conclusions or auditor decisions?

The McGraw-Hill Companies, Inc., 2012ACL-14 Auditing & Assurance Services, 8/e

Page 15: ACL Assignments 8e

Chapter 9 ACL Problems Return to MenuFor technical assistance with ACL, please contact technical support: 604-669-4225; [email protected]; http://www.acl.com/supportcenter/

(Note: Unless otherwise instructed, please submit your answers to the following problems to your instructor in a word processing document.)

Messier/Glover/Prawitt End-of-Chapter 9, ACL ProblemsAs introduced above in the ACL problems for Chapter 3, Roger Company is a mid-size company located in the Midwest that handles the distribution of various home and garden products. You are part of the engagement team assigned to audit the financial statements of Roger Company. Roger Company has been a client of your firm for many years, and your firm has rarely encountered any problems with them. However, the engagement partner has made it very clear to you that there is no room for mistakes. Your tasks as one of the auditors on the engagement are outlined below and in other problems of the remaining chapters.

Please download the Roger Company ACL files, if you haven’t already. They are found under Course-Wide Content on the Student Edition of your text’s Online Learning Center. See instructions for opening the Roger Company files in the Chapter 3 assignment above.

Problem 1In addition to determining sample size, ACL can also select a random sample for you. Draw a sample of Accounts Receivable (AR) transactions from the Roger Company AR table assuming the confidence is 95, the upper error limit is 9 percent, and the expected error rate is 5 percent.

1. Open the Roger_Company_AR table2. Select Sampling >> Sample Records and the Sample window appears3. Make sure Record is the chosen Sample Type4. Under Sample Parameters, click on the Random option5. Click on the Size button so the Size Dialogue box opens6. Enter the parameters as specified above (Note: The Population field should

automatically have a value in it.)7. Click on Calculate, click on OK8. In the To field, type “Roger AR Sample”9. Click OK10. How many records are in the new Roger Company AR Sample table?

Problem 2Assuming that the electronic data were difficult to obtain and that the client compiled the electronic data only for the sample you selected in Problem 1, evaluate the effectiveness of the control that the invoice date should always precede the due date.

1. Create a filter in the Roger AR Sample table for the control described above2. How many exceptions are there to the control above? 3. Select Sampling from the menu toolbar and click on Evaluate Error4. Make sure Record is the selected sample type5. Enter the appropriate parameters (i.e., Confidence 95, Sample Size 175, and the number

of exceptions you observed)

The McGraw-Hill Companies, Inc., 2012ACL Assignments ACL-15

Page 16: ACL Assignments 8e

6. Click OK7. What is the upper error limit frequency?

Based on the results from the operations you completed above, can the control be considered effective? Why or why not?

Problem 3Determine an appropriate sample size to test the Roger_Company_AR table using monetary unit sampling using the following inputs:

1. Open the Roger_Company_AR table2. Sum the Amount field3. Select Sampling >> Calculate Sample Size and the Size window appears4. Make sure Monetary is the chosen on the Main tab5. Input the following:

Confidence is 92 percent Population is the sum of the Amount field Materiality is 10000 Expected Total Errors is 1500

6. Click on Calculate7. What is the appropriate sample size?

Problem 4Create a Roger Company MUS Sample table (or file) by selecting Sample >> Sample Records. Make sure MUS is the chosen sample type and Fixed Interval is the chosen option under Sample Parameters. Enter the appropriate Interval value from the results in Problem 3 (find interval under the calculated sample size), and chose 350 as the Start. Ignore the Cutoff field. Save the table as “Roger Company MUS Sample.” How many records are in the sample table? Why is the sample size different from what was calculated in Problem 3?

Problem 5Use ACL to complete questions b and c of problem 9-21 in your textbook. For problem “b” Use the Sampling >> Calculate Sample Size command. Take note of the interval in the results to use for problem c. For problem “c” use the Sampling >> Evaluate Error command. Input the data from problem “b” for confidence and the interval from the ACL results when you completed problem “b.” Enter book value and error amounts in the “Errors” box for each misstatement discovered. Follow the notation “Item amount, Error” where “Item amount” is the book value and “Error” is the error amount or audit difference observed.

The McGraw-Hill Companies, Inc., 2012ACL-16 Auditing & Assurance Services, 8/e

Page 17: ACL Assignments 8e

Chapter 10 ACL Problems Return to MenuFor technical assistance with ACL, please contact technical support: 604-669-4225; [email protected]; http://www.acl.com/supportcenter/

(Note: Unless otherwise instructed, please submit your answers to the following problems to your instructor in a word processing document.)

Messier/Glover/Prawitt End-of-Chapter 10, ACL ProblemsAs introduced above in the ACL problems for Chapter 3, Roger Company is a mid-size company located in the Midwest that handles the distribution of various home and garden products. You are part of the engagement team assigned to audit the financial statements of Roger Company. Roger Company has been a client of your firm for many years, and your firm has rarely encountered any problems with them. However, the engagement partner has made it very clear to you that there is no room for mistakes. Your tasks as one of the auditors on the engagement are outlined below and in other problems of the remaining chapters.

Please download the Roger Company ACL files, if you haven’t already. They are found under Course-Wide Content on the Student Edition of your text’s Online Learning Center. See instructions for opening the Roger Company files in the Chapter 3 assignment above.

Problem 1Possible misstatements due to lack of appropriate sales authorization include selling goods at unauthorized prices, selling amounts that exceed customer credit limits, and/or selling to customers who are bad credit risks. Roger Company’s policy does permit sales in excess of credit limits, but only with management approval.

a. Use the Roger Company’s AR table to determine how many sales were made that exceeded customer credit limits. b. Determine how many of the sales in part "a" (where the credit limit was surpassed) were not approved.

Problem 2Possible misstatements that may occur during the cash receipts process result from cash receipts being received, but not recorded (which could facilitate embezzlement). A control technique that is used to mitigate the risk of such misstatements is to segregate the duties of the accounts receivable department, general ledger accounting records, and cash receipts. The employee who completed each duty is required to sign his/her initials, and evidence of this has been provided for you in the AR table. In each transaction, proper segregation of duties is accomplished when no two duties have been completed by the same person. Use ACL and the information from Roger Company’s AR table to determine in which transactions segregation of duties was not properly implemented.

The McGraw-Hill Companies, Inc., 2012ACL Assignments ACL-17

Page 18: ACL Assignments 8e

Chapter 11 ACL Problems Return to MenuFor technical assistance with ACL, please contact technical support: 604-669-4225; [email protected]; http://www.acl.com/supportcenter/

(Note: Unless otherwise instructed, please submit your answers to the following problems to your instructor in a word processing document)

Messier/Glover/Prawitt End-of-Chapter 11, ACL ProblemsAs introduced above in the ACL problems for Chapter 3, Roger Company is a mid-size company located in the Midwest that handles the distribution of various home and garden products. You are part of the engagement team assigned to audit the financial statements of Roger Company. Roger Company has been a client of your firm for many years, and your firm has rarely encountered any problems with them. However, the engagement partner has made it very clear to you that there is no room for mistakes. Your tasks as one of the auditors on the engagement are outlined below and in other problems of the remaining chapters.

Please download the Roger Company ACL files, if you haven’t already. They are found under Course-Wide Content on the Student Edition of your text’s Online Learning Center. See instructions for opening the Roger Company files in the Chapter 3 assignment above.

Problem 1A risk in the purchasing process is that a purchase is made from an unauthorized vendor. Use the Data >> Relate Tables command in ACL (see ACL in Practice Chapter 6) to relate, by vendor number, the Roger_Company_Vendors table to the Roger_Company_AP_Transactions table, and determine how many purchases were made from unauthorized vendors. This can be accomplished by creating a new column of vendor numbers from the Roger_Company_Vendors table and adding it to Roger_Company_AP_Transactions table.

Problem 2In prior year’s audits, the auditor has discovered cutoff errors in the purchasing area. In some cases, Rogers included a liability in the subsequent year when it should have been included in the current year. In other cases, Rogers included a liability in the current year, even though the purchase transaction related to the next year. For purposes of this problem only, assume the fiscal year for Roger Company is from March 1, 2011 to February 28, 2012. Using the Roger_Company_AP_Transactions table, what is the total invoice value of the purchases that were inappropriately included in the February 28, 2012 balance that should have been recorded in the subsequent fiscal year?

The McGraw-Hill Companies, Inc., 2012ACL-18 Auditing & Assurance Services, 8/e

Page 19: ACL Assignments 8e

Chapter 12 ACL Problems Return to MenuFor technical assistance with ACL, please contact technical support: 604-669-4225; [email protected]; http://www.acl.com/supportcenter/

(Note: Unless otherwise instructed, please submit your answers to the following problems to your instructor in a word processing document.)

Messier/Glover/Prawitt End-of-Chapter 12, ACL ProblemsAs introduced above in the ACL problems for Chapter 3, Roger Company is a mid-size company located in the Midwest that handles the distribution of various home and garden products. You are part of the engagement team assigned to audit the financial statements of Roger Company. Roger Company has been a client of your firm for many years, and your firm has rarely encountered any problems with them. However, the engagement partner has made it very clear to you that there is no room for mistakes. Your tasks as one of the auditors on the engagement are outlined below and in other problems of the remaining chapters.

Please download the Roger Company ACL files, if you haven’t already. They are found under Course-Wide Content on the Student Edition of your text’s Online Learning Center. See instructions for opening the Roger Company files in the Chapter 3 assignment above.

Problem 1A relatively common fraud involves a fraudster writing checks to a “ghost” employee. Although Roger Company hasn’t had any problems of this nature in the past, there has been significant turnover in the HR department and you want to test that payroll checks are going only to current, valid employees. Use the Data >> Relate Tables command in ACL (see ACL in Practice Chapter 6) to make sure that all employees who are receiving checks are actual employees of the company. Once the tables are related, there are a number of ways you can determine if there are “ghost” employees (e.g., use Add Column to insert the employee number data from one table into another). Document your results.

Problem 2Using ACL, test the Roger_Company_Employee_Master table for duplicate records. How many duplicate records exist? Also, test the Roger_Company_Payroll table for duplicate records. How many duplicate records exist? Comment on the results.

The McGraw-Hill Companies, Inc., 2012ACL Assignments ACL-19

Page 20: ACL Assignments 8e

Chapter 13 ACL Problems Return to MenuFor technical assistance with ACL, please contact technical support: 604-669-4225; [email protected]; http://www.acl.com/supportcenter/

(Note: Unless otherwise instructed, please submit your answers to the following problems to your instructor in a word processing document.)

Messier/Glover/Prawitt End-of-Chapter 13, ACL ProblemsAs introduced above in the ACL problems for Chapter 3, Roger Company is a mid-size company located in the Midwest that handles the distribution of various home and garden products. You are part of the engagement team assigned to audit the financial statements of Roger Company. Roger Company has been a client of your firm for many years, and your firm has rarely encountered any problems with them. However, the engagement partner has made it very clear to you that there is no room for mistakes. Your tasks as one of the auditors on the engagement are outlined below and in other problems of the remaining chapters.

Please download the Roger Company ACL files, if you haven’t already. They are found under Course-Wide Content on the Student Edition of your text’s Online Learning Center. See instructions for opening the Roger Company files in the Chapter 3 assignment above.

Problem 1Inventory is typically sold at a price higher than cost. However, sometimes certain inventory items become obsolete and must be priced lower than the unit cost. Using the Roger Company file, determine which items Roger Company is selling at a price below the unit cost.

Problem 2Create a histogram of the market value of the inventory items at Roger Company. This histogram will help you to visualize the market value of inventory items at Roger Company. Use the Analyze >> Histogram command and select “Market_Value” from the drop down menu. Choose 100 as a minimum and 10000 as a maximum. Leave the interval at 10. Comment on the results of your histogram. Copy the graph to your clipboard and paste it to the word processing document you are using to submit your answers. Alternatively, you can print the graph and submit it to your instructor with your solutions.

The McGraw-Hill Companies, Inc., 2012ACL-20 Auditing & Assurance Services, 8/e

Page 21: ACL Assignments 8e

Chapter 14 ACL Problems Return to Menu For technical assistance with ACL, please contact technical support: 604-669-4225; [email protected]; http://www.acl.com/supportcenter/

(Note: Unless otherwise instructed, please submit your answers to the following problems to your instructor in a word processing document.)

Messier/Glover/Prawitt End-of-Chapter 14, ACL ProblemsAs introduced above in the ACL problems for Chapter 3, Roger Company is a mid-size company located in the Midwest that handles the distribution of various home and garden products. You are part of the engagement team assigned to audit the financial statements of Roger Company. Roger Company has been a client of your firm for many years, and your firm has rarely encountered any problems with them. However, the engagement partner has made it very clear to you that there is no room for mistakes. Your tasks as one of the auditors on the engagement are outlined below and in other problems of the remaining chapters.

Please download the Roger Company ACL files, if you haven’t already. They are found under Course-Wide Content on the Student Edition of your text’s Online Learning Center. See instructions for opening the Roger Company files in the Chapter 3 assignment above.

Problem 1An audit procedure that is useful for identifying potential risks is to scan transactions for unusual items. ACL can help with such a procedure by expediting the scanning process, especially when the database of transactions is large. Use the Analyze >> Stratify command in ACL to stratify the Invoice_Amount field in the Roger_Company_AP_Transactions table. Set the minimum and maximum at values that seem appropriate for this dataset. Comment on the results. Are there any transactions that seem unusual? Include a copy of the stratification table in your answer.

Problem 2Another way auditors can quickly scan a large database of transactions is to use the Analyze >> Classify command in ACL (see ACL in Practice Chapter 5). Use the Analyze >> Classify command in ACL to classify the Vendor_Number field in the Roger_Company_AP_Transactions table. Choose Invoice_Amount as the subtotal field. Comment on the results. Are there any transactions that seem unusual? If so, which transactions appear unusual?

The McGraw-Hill Companies, Inc., 2012ACL Assignments ACL-21

Page 22: ACL Assignments 8e

Chapter 15 ACL Problems Return to MenuFor technical assistance with ACL, please contact technical support: 604-669-4225; [email protected]; http://www.acl.com/supportcenter/

(Note: Unless otherwise instructed, please submit your answers to the following problems to your instructor in a word processing document.)

Messier/Glover/Prawitt End-of-Chapter 15, ACL ProblemsAs introduced above in the ACL problems for Chapter 3, Roger Company is a mid-size company located in the Midwest that handles the distribution of various home and garden products. You are part of the engagement team assigned to audit the financial statements of Roger Company. Roger Company has been a client of your firm for many years, and your firm has rarely encountered any problems with them. However, the engagement partner has made it very clear to you that there is no room for mistakes. Your tasks as one of the auditors on the engagement are outlined below and in other problems of the remaining chapters.

Please download the Roger Company ACL files, if you haven’t already. They are found under Course-Wide Content on the Student Edition of your text’s Online Learning Center. See instructions for opening the Roger Company files in the Chapter 3 assignment above.

Problem 1Common procedures that auditors perform are footing and cross-footing. Footing is the process of adding a column of numbers, and cross-footing is the process of adding a row of numbers. As was demonstrated in earlier ACL problems, footing can easily be done by simply selecting a column and pressing the Total button (which looks like this: ). Cross-footing, on the other hand, is not as easy. In the Roger_Company_Shipping table use the expression filter to determine if, in any given record, the Subtotal field and the Tax field do not add up to an amount equal to the Invoice_total field. Include the expression you used in your answer. What seems to be the reason why there are a few cases where the Subtotal field added to the Tax field doesn’t equal the Invoice_total field?

The McGraw-Hill Companies, Inc., 2012ACL-22 Auditing & Assurance Services, 8/e

Page 23: ACL Assignments 8e

Chapter 16 ACL Problems Return to MenuFor technical assistance with ACL, please contact technical support: 604-669-4225; [email protected]; http://www.acl.com/supportcenter/

(Note: Unless otherwise instructed, please submit your answers to the following problems to your instructor in a word processing document.)

Messier/Glover/Prawitt End-of-Chapter 16, ACL ProblemsAs introduced above in the ACL problems for Chapter 3, Roger Company is a mid-size company located in the Midwest that handles the distribution of various home and garden products. You are part of the engagement team assigned to audit the financial statements of Roger Company. Roger Company has been a client of your firm for many years, and your firm has rarely encountered any problems with them. However, the engagement partner has made it very clear to you that there is no room for mistakes. Your tasks as one of the auditors on the engagement are outlined below and in other problems of the remaining chapters.

Please download the Roger Company ACL files, if you haven’t already. They are found under Course-Wide Content on the Student Edition of your text’s Online Learning Center. See instructions for opening the Roger Company files in the Chapter 3 assignment above.

Problem 1Use ACL to test the integrity of the data in the Roger_Company_AR table. Specifically, use the Analyze >> Look for Gaps and Analyze >> Look for Duplicates commands to determine the consistency of the data in the Invoice_Number field (refer to the ACL Help menu for additional guidance regarding these procedures). Are there any gaps and/or duplicates? Imagine what it would be like to manually look for duplicates or gaps in a large database and compare that to how ACL was able to accomplish the same task.

Problem 2Roger Company has a policy of making routine cash disbursements on a bi-monthly basis and saving the cash disbursements information in a database that is available to you as the Roger_Company_Cash_Disbursements table. Data for non-routine cash disbursements is saved in a different database. Roger Company considers cash disbursements under $1,500 as routine, and everything else should be in the other database. Use ACL and the Roger_Company_Cash_Disbursements table to determine if all cash disbursements are under $1,500. Comment on the results.

The McGraw-Hill Companies, Inc., 2012ACL Assignments ACL-23

Page 24: ACL Assignments 8e

Chapter 17 ACL Problems Return to MenuFor technical assistance with ACL, please contact technical support: 604-669-4225; [email protected]; http://www.acl.com/supportcenter/

(Note: Unless otherwise instructed, please submit your answers to the following problems to your instructor in a word processing document.)

Messier/Glover/Prawitt End-of-Chapter 17, ACL ProblemsAs introduced above in the ACL problems for Chapter 3, Roger Company is a mid-size company located in the Midwest that handles the distribution of various home and garden products. You are part of the engagement team assigned to audit the financial statements of Roger Company. Roger Company has been a client of your firm for many years, and your firm has rarely encountered any problems with them. However, the engagement partner has made it very clear to you that there is no room for mistakes. Your tasks as one of the auditors on the engagement are outlined below and in other problems of the remaining chapters.

Please download the Roger Company ACL files, if you haven’t already. They are found under Course-Wide Content on the Student Edition of your text’s Online Learning Center. See instructions for opening the Roger Company files in the Chapter 3 assignment above.

Problem 1Use ACL and the Roger_Company_Cash_Disbursements table to determine the total amount paid for legal services over the last year. From experience on past audits, you know that Happy Homes Law Offices handles all of Roger Company’s legal issues and that Roger Company records legal payments as “Legal Services.” However, you want to make sure no other legal fees have been paid to other law offices. Using ACL, conduct a search for payments made to other lawyers. What is the total amount paid for legal services? Were payments for legal services made to law offices other than Happy Homes? List any other law offices that received payments. What other steps do you suggest the auditor take with this new found information?

Problem 2Roger Company has a policy that routine payments should be made frequently enough so that a vendor’s accounts payable balance never exceeds $500. The Roger_Company_Cash_Disbursements table is organized to display the running accounts payable balance over time. Use ACL and the Roger_Company_Cash_Disbursements table to determine if all balances are under $500. Comment on the results.

The McGraw-Hill Companies, Inc., 2012ACL-24 Auditing & Assurance Services, 8/e

Page 25: ACL Assignments 8e

Chapter 18 ACL Problems Return to MenuFor technical assistance with ACL, please contact technical support: 604-669-4225; [email protected]; http://www.acl.com/supportcenter/

(Note: Unless otherwise instructed, please submit your answers to the following problems to your instructor in a word processing document.

Messier/Glover/Prawitt End-of-Chapter 18, ACL ProblemsAs introduced above in the ACL problems for Chapter 3, Roger Company is a mid-size company located in the Midwest that handles the distribution of various home and garden products. You are part of the engagement team assigned to audit the financial statements of Roger Company. Roger Company has been a client of your firm for many years, and your firm has rarely encountered any problems with them. However, the engagement partner has made it very clear to you that there is no room for mistakes. Your tasks as one of the auditors on the engagement are outlined below and in other problems of the remaining chapters.

Please download the Roger Company ACL files, if you haven’t already. They are found under Course-Wide Content on the Student Edition of your text’s Online Learning Center. See instructions for opening the Roger Company files in the Chapter 3 assignment above.

Problem 1Use ACL to look for gaps and duplicates in the voucher numbers in the Roger_Company_Cash_Disbursements table (refer to problem 1 in Chapter 16 or the ACL Help menu for additional guidance regarding these procedures). How many duplicates and gaps were found? Use the expression filter to look up some of the voucher numbers that were listed as the results of the Analyze >> Look for gaps command. Do you notice anything interesting? Comment on the results.

The McGraw-Hill Companies, Inc., 2012ACL Assignments ACL-25

Page 26: ACL Assignments 8e

Chapter 19 ACL Problems Return to MenuFor technical assistance with ACL, please contact technical support: 604-669-4225; [email protected]; http://www.acl.com/supportcenter/

(Note: Unless otherwise instructed, please submit your answers to the following problems to your instructor in a word processing document.)

Messier/Glover/Prawitt End-of-Chapter 19, ACL ProblemsAs introduced above in the ACL problems for Chapter 3, Roger Company is a mid-size company located in the Midwest that handles the distribution of various home and garden products. You are part of the engagement team assigned to audit the financial statements of Roger Company. Roger Company has been a client of your firm for many years, and your firm has rarely encountered any problems with them. However, the engagement partner has made it very clear to you that there is no room for mistakes. Your tasks as one of the auditors on the engagement are outlined below and in other problems of the remaining chapters.

Please download the Roger Company ACL files, if you haven’t already. They are found under Course-Wide Content on the Student Edition of your text’s Online Learning Center. See instructions for opening the Roger Company files in the Chapter 3 assignment above.

Problem 1A policy that is in effect at Roger Company is that cash disbursements should only be made to vendors with an approved vendor number. In some cases, a vendor number is not available but the vendor is still valid. Use the Roger_Company_Cash_Disbursements table and the Data >> Relate tables command in ACL (see ACL in Practice Chapter 6) to determine which cash disbursements have an authorized vendor number and which ones do not. To make it easier for you to scan the database for valid vendor numbers you may also want to use the expression filter. How many cash disbursements do not have a valid vendor number? Comment on the results.

The McGraw-Hill Companies, Inc., 2012ACL-26 Auditing & Assurance Services, 8/e

Page 27: ACL Assignments 8e

Chapter 20 ACL Problems Return to MenuFor technical assistance with ACL, please contact technical support: 604-669-4225; [email protected]; http://www.acl.com/supportcenter/

(Note: Unless otherwise instructed, please submit your answers to the following problems to your instructor in a word processing document.)

Messier/Glover/Prawitt End-of-Chapter 20, ACL ProblemsAs introduced above in the ACL problems for Chapter 3, Roger Company is a mid-size company located in the Midwest that handles the distribution of various home and garden products. You are part of the engagement team assigned to audit the financial statements of Roger Company. Roger Company has been a client of your firm for many years, and your firm has rarely encountered any problems with them. However, the engagement partner has made it very clear to you that there is no room for mistakes. Your tasks as one of the auditors on the engagement are outlined below and in other problems of the remaining chapters.

Please download the Roger Company ACL files, if you haven’t already. They are found under Course-Wide Content on the Student Edition of your text’s Online Learning Center. See instructions for opening the Roger Company files in the Chapter 3 assignment above.

Problem 1In Problem 2 from Chapter 16 it was discovered that there were some routine cash disbursements that exceeded the $1,500 limit to Hartford Brothers for cleaning services. Use ACL and the Roger_Company_Cash_Disbursements table to ascertain what the typical running balance is for the vendor Hartford Brothers. Comment on the results considering both the typical running balance and payments that exceed the routine transaction limit (see description in Problem 2, Chapter 16).

The McGraw-Hill Companies, Inc., 2012ACL Assignments ACL-27

Page 28: ACL Assignments 8e

Chapter 21 ACL Problems Return to MenuFor technical assistance with ACL, please contact technical support: 604-669-4225; [email protected]; http://www.acl.com/supportcenter/

(Note: Unless otherwise instructed, please submit your answers to the following problems to your instructor in a word processing document.)

Messier/Glover/Prawitt End-of-Chapter 21, ACL ProblemsAs introduced above in the ACL problems for Chapter 3, Roger Company is a mid-size company located in the Midwest that handles the distribution of various home and garden products. You are part of the engagement team assigned to audit the financial statements of Roger Company. Roger Company has been a client of your firm for many years, and your firm has rarely encountered any problems with them. However, the engagement partner has made it very clear to you that there is no room for mistakes. Your tasks as one of the auditors on the engagement are outlined below and in other problems of the remaining chapters.

Please download the Roger Company ACL files, if you haven’t already. They are found under Course-Wide Content on the Student Edition of your text’s Online Learning Center. See instructions for opening the Roger Company files in the Chapter 3 assignment above.

Problem 1Write a brief paragraph explaining how you believe ACL is most useful to auditors. If necessary, go back to the ACL problems you have completed throughout the term to refresh your memory regarding the capabilities within ACL.

The McGraw-Hill Companies, Inc., 2012ACL-28 Auditing & Assurance Services, 8/e