Natchapha 6143241826

Phornprakaikaew 6143284826

ASSIGNMENT#1
1. Open the AR file, Profile the data, and Stratify on the Trans Amount field. Print the Last
Results window and write an analysis providing possible explanations for the results
obtained.

The common transaction amount’s interval is between the third and eighth row.
Thus, the auditor may need to investigate the transactions that are outliers. In this
case, they may observe which type of transactions they are and whether they are
valid or not.

2. Open the AR file, stratify the file on the Trans Amount field, and use the expression
builder to create filters that limit the strata to
a. sales invoice transactions only.

Most transactions are on the left area and the uncommon ones are on the right
area of the graph. From the table we can see that there are only 3 outliers that lie
within the eighth and the tenth interval. Thus, auditors need to look at those sales
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invoice files with the amount over 3,886.44 and check whether they are valid sales
or not as it could be fictitious. The auditors also need to look at the date of the
sales transaction. If they are close to year-end, the company may make up these
sales transactions so they could meet the sales target of the year.

b. credit note (memo) transactions only.

The normal range lies between the eighth and the tenth interval. The irregular one
is with the highest transaction amounts of 663.54 for one count in the first interval.
As auditors, we need to look into that credit note to see why the error amount that
caused the company to issue a credit note is very high. The auditor may trace back
to the original invoice in which the credit memo is issued against.

c. payment transactions only.

The transaction amount of the first interval is very high compared to the others.
The auditor might have to check why this customer pays the company so much on
just one order. If they are close to year-end, the company may make up for these
sales transactions by making a deal with the closed customer to buy and return
next year so they could meet the sales target of the year. Moreover, the valid
payment transaction amount should be negative so auditors may take a look into
details whether the amount will be uncollectible or not.
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d. transfer (write-off) transactions.

The regular amount of transfer transactions should be negative; therefore, there is

an invalid transaction in the last interval that needs to be investigated. The
company may forget to write off the uncollectible amount as an error or by
intention to make the statement of financial position look good in the investor view.
Furthermore, the transaction amount of the first interval is ridiculously high. The
auditor needs to find out why the company was unable to collect such a high
amount from customers.

3. Open the AR file and use the expression builder to create a filter that screens for invalid
transaction types. (wrong positive/negative amount ex. Invoice usually have positive
transaction amount, so invalid one would be negative)
Print the results and comment.
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There are 23 invalid transactions in total. The most invalid transaction type is
payment transaction so it could possibly mean that the company is trying to create
fictitious sales. However, this matter needs to be further investigated.

4. Using the Relation feature, create a view from data in both the AR and Customer files
that shows customer details (name and street address) for payment transactions with
abnormal (positive) amount values. Print the view and comment on the results.

Auditors may have to look at the customer number 222006 in which only one
payment had been made by this customer with the positive sign of 539.97 which is
considerably high compared with other amounts.

5. Using the Join feature, create a view from data in both the AR and Customer files that
show customer details (name and address) for payment transactions with abnormal
(positive) amount values. Print the view and comment on the results.
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From using the join feature, we can see from the table that there are 20 invalid
transactions. The customer that pays such an enormous amount is Dynamix
Industries which is around 539.

ASSIGNMENT#2

1. Open the AP Trans (purchases) file and stratify it on the Quantity field. Print the last
results window and comment on the action to be taken by the auditor.

From the table, we can see that the common purchase amount is in the 1-846
range. The one that has to be concerned are the fourth, fifth, and tenth interval
with an amount of 3379, 4224, and 8459 respectively. The auditor has to investigate
why the company relies heavily on these three suppliers.
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2. Using the Relation feature, create a view from data in both the AP Trans (purchases) and
Inventory files that shows product details (product description and quantity on-hand).
Print the view and comment on the results.

For row 1, we can see that the company purchased 90 more products during the
year. However, they have 460 quantities on hand at the end of the year. Thus, 90
more should not have been purchased in the first place. This also applies to other
products such as row 2, 4, 9, and 10 as the quantity on hand at year end is very
high so meaning that they sold very little during the year. Thus, the company should
not have stocked more products during the year. The auditor might have to find out
why the company stocks the inventory from those vendors so high.

3. Open the EMPMAST (employee master file) and test for duplicate employee records.
Prepare a last-results report that identifies anomalies or potential errors. Print the report
and comment on the results.

The result shows that there are no duplicate employee records. However, the
auditors could further search for the outsource company as well as they could be
only first or last names that are duplicated.
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4. Using the Relation feature, create a view of data from both the Empmast and Payroll
files that test for paychecks to non-existent employees.

This is the employee no. that is on payroll but not employee master file. Meaning
that the company could possibly be paying to a fictitious employee as the paid
amount and date are exactly the same for those two employees. The auditor needs
to investigate the payroll department. Moreover, they should trace back to the
account number whether it is the same as other employees or not. On the other
hand, it could possibly, but rarely, mean that the employee master file is not
updated; consequently, there are employee numbers on the payroll, but not the
master file.

5. Using the Join feature, create a view of data from both the Empmast and Payroll files
that tests for paychecks to nonexistent employees.

This is 2 fictitious employees that could not find a match in the employee master
file. This is the employee no. that is on payroll but not employee master file.
Meaning that the company could possibly be paying to a fictitious employee. The
auditor needs to investigate the payroll department. Moreover, they should trace
back to the account number whether it is the same as other employees or not. On
the other hand, it could possibly, but rarely, mean that the employee master file is
not updated; consequently, there are employee numbers on the payroll, but not the
master file.