INSTRUCTIONS

The following workbook is a reference tool which summarizes some of the most effective uses of
ACL and outlines the necessary data, suggested downloads, and ACL procedures required to
perform the analyses. Procedures described within are included for informational purposes only and
are not a required part of the audit. Accordingly, this workbook should not be kept in the audit
working papers. ACL work performed as part of the audit can be documented using the "****Blank
ACL Workpaper-Excel" (insert into AS/2 index from New Documents).

This reference tool details both traditional audit tests, as well as analytical procedures to measure
business metrics, identify control weaknesses, and quantify operational issues. Columns on each
worksheet provide, for each test, guidance on purpose of test, suggested downloads, and the
required function in ACL. Tabs on the workbook are organized by audit area (e.g., Cash, Inventory,
Payables, Fraud).

If you have any questions regarding ACL, please contact the A&A Technology Support Hotline in
Princeton at (609) 520 - 2400.
Fraud Related ACL Procedures

# Area Audit Test Purpose of Test Data Extracts Required ACL function Data Extract Source
1 Human Resources Payroll validity Identify duplicate addresses, ss#, bank HR data: employee name; ss#, address, chk acct#, duplicates search Payroll records
accts accrued vacation, vacation taken, overtime billed, phone
#

2 Human Resources Timely assoc. disposition Verify ex-employees no longer on List of terminated employees: employee name; ss#, join / match Payroll records; HR
payroll address, chk acct#, accrued vacation, vacation taken, terminations
overtime billed, phone #

3 Human Resources Match payroll with employee Verify only employees get paid HR data as above; Payroll run join / match Payroll records / HR master
master

4 Human Resources Vacation/Overtime Identify assoc. with no or minimal HR data: employee name; ss#, address, chk acct#, sort / index HR master; payroll records
vacation taken accrued vacation, vacation taken, overtime billed, phone
#

5 Human Resources Temp/Consultants validity Verify temp/consulting employees and HR list of contractors by name, ss#, rate, dept; Payroll run sort/index/join/match/ HR contractors list; payroll
pmts statistics records

6 Vendors Common vendor names Verify existence of vendors with Vendor master data: name, address, phone, contact index A/P / Purchasing master data
common names name

7 Vendors Purchases fluctuation Identify large fluctuations as compared Purchases by vendor PY and FY comparison sort Purchases / A/P payments
to PY

8 Vendors Payments to unapproved Identify payments to unapproved Approved vendors list; FY A/P payments join / match A/P check runs; Purchasing
vendors vendors approved vendor list

9 Vendors Payments of manual checks Identify duplicate payments via manual Manual Check Log; FY A/P payments join / match A/P check runs, A/P manual
checks check log

10 Vendors Payments sent to PO Boxes Check validity of payments made to PO FY A/P payments index A/P check runs
Boxes

11 Vendors Vendors who are employees Identify any vendors that are Vendor master and HR master join / match / merge Vendor and HR Masters
employees

12 Vendors Check sequence Identify any checks out of sequence FY A/P Payments sequence analysis A/P check runs

13 Vendors Duplicate payments Identify any duplicate payments FY A/P Payments extract A/P check runs

14 Vendors Duplicate POs Extract invoices posted with duplicate FY A/P Payments with invoice #, PO #, amount, payee, extract; statistics A/P check runs
PO's check#

15 Vendors No POs Summarize large invoices with no PO FY A/P Payments as above extract A/P check runs
numbers

ACL Procedures: Fraud Page 2 of 16

Fraud Related ACL Procedures

# Area Audit Test Purpose of Test Data Extracts Required ACL function Data Extract Source
16 Vendors PO vs. Invoice differences Identify PO vs. invoice differences Purchase orders / Invoice numbers paid match and sort Closed POs and invoices paid

17 Vendors Consultants / 3rd party Verify propriety FY A/P Payments to 3rd parties / Contractors index; statistics A/P check runs
services

18 Vendors Sequential Invoices Identify unusually close sequential Invoice numbers by vendor; date sequence Invoice A/P data
pattern of invoice numbers

19 Vendors Duplicate Invoices Identify duplicate invoices Vendor name, numbers, invoice date, item description, sequence Vendor invoice A/P data

invoice amounts, invoice quantity

20 Vendors Vendors with same address Identify vendors with same address Vendor master match Vendor master

21 A/R Collector Assignments Identify accounts without collectors Customer Master data: name, address, contact, phone#, index, filter Customer A/R master data
assignments credit limit, open balance, ship to, collector

22 A/R Customers who are Identify any customers who are Customer Master data: name, address, contact, phone#, join / match / merge Customer A/R master data; HR
employees employees credit limit, open balance, ship to, collector master

23 A/R Company phone number as Identify any customers with contact Customer Master data: name, address, contact, phone#, index, filter Customer A/R master data
contact phone = Company credit limit, open balance, ship to, collector

24 A/R Duplicate invoice Identify any duplicate invoices A/R invoice postings: invoice #; cust. name, cust #, date, extract, filter, sort A/R FY invoice postings
numbers/etc. item#, description

25 A/R Employee associate Review associate purchases for large FY Employee purchases; name, date, amount, item, qty, statistics, index Employee purchases detail
purchases amounts pymt history

26 A/R Write-offs Determine validity of write-offs FY A/R system write-offs; legal A/R w/offs statistics, index All FY write-offs for specific
accounts data

27 A/R Customers with PO Boxes Identify any customers with PO Boxes A/R Customer data index, filter A/R master data

28 A/R Customers with no contact Identify any customers with no phone A/R customer data index, filter A/R master data
phone number number

29 A/R / Sales Sales / A/R match Identify all customers in sales that are A/R customer data; Sales master data merge / join A/R and Sales master
not in A/R

30 A/R Duplicate accounts within Identify any duplicates in A/R portfolio A/R customer data / Sales master data extract A/R and Sales master
the portfolio

31 Sales Low/Negative margins Review customers with significant % of FY Sales by customer by margin index Sales processing data for FY
low or negative margins or quarterly to control volume

ACL Procedures: Fraud Page 3 of 16

Fraud Related ACL Procedures

# Area Audit Test Purpose of Test Data Extracts Required ACL function Data Extract Source

32 Sales/A/R Refunds Identify high volume refund customers Customer name; refund amount, date statistics A/R transaction data

33 Sales/A/R Refunds Identify refunds paid to Company Address, customer name; HR master join HR master; Refunds data
employees

34 Sales Promotions Returns Determine return rates for promotional Sales by promotional sku and returns by sku may or may not be an Selected skus, promotions
products ACL test paid out/payroll; returns data
from promo date

35 Sales Excessive Returns Identify higher than average returns FY returns by vendor, sku, amount, number of items statistics Returns data for FY
over time

36 Distribution Cycle Count Adjustments Determine the cause of material cc Warehouse cycle count adjustments data statistics/ index CC FY data
adjustments

37 General Equipment issuance Determine validity of issuance List of items issued; HR master join / merger HR master; equipment data
(computers, cell phones, call cards,
etc.)

38 Purchasing General Purchasing test Extract statistics for further sampling Purchases made: date, amount, vendor, PO# statistics Purchases g/l

39 Purchasing Purchases under review limit Identify purchases just under the $ limit Purchases detail index Purchases g/l
that requires additional approval

ACL Procedures: Fraud Page 4 of 16

Cash & Investment Related ACL Procedures

# Area Audit Test Purpose of Test Data Extracts Required ACL function Data Extract Source

1 Bank Reconciliations Cutoff Identify reconciling items after reconciliation reconciling items: date, item#, sort, filter reconciling items detail
cutoff date description, amount

2 Bank Reconciliations Validity of reconciling items Identify old items which should no longer be reconciling items: date, item#, age, sort, filter reconciling items detail
outstanding reconciling items description, amount

3 Bank Reconciliation CMA Sampling Perform CMA sampling of reconciling items reconciling items: date, item#, Sample reconciling items detail
Sampling description, amount

4 Investment Subledger Negative / $0 Cost Items in Identify items with negative or zero cost sku, CUSIP, or SEDOL #, sort Portfolio Inventory
Portfolio description, qty, unit cost subledger

5 Investment Subledger Negative Qty Items / Negative Identify items with negative qty sku #, description, qty, unit cost sort Portfolio Inventory
Values in Investment Portfolio subledger

6 Investment Subledger Duplicate Sku's, Costs / Identify Duplicate Sku #, CUSIPs, SEDOLs, sku #, description, qty, unit cost sort/sequence Portfolio Inventory
Duplicate CUSIPs & SEDOLs and description or cost subledger
in Investment Portfolio

7 Investment Purchases made according to Identify purchases outside of portfolio Purchases detail index Purchases subledger
Purchasing Controls portfolio guidelines guidelines.

8 Portfolio Inventory Match client portfolio records Identify existence of all securities held in client Download of portfolio position match & sort Portfolio Inventory
Existence with custodian's portfolio; also determine accuracy of client detail subledger
reconciliation. With information obtained, can
also examine pricing/cost amounts.

9 Portfolio Inventory Stale prices / price Identify securities with stale prices. Obtain Download of portfolio position match & sort / Portfolio Inventory
Pricing / Performance fluctuations / performance metrics for price fluctuations among classes of detail over selected period of time statistics subledger
Metrics calculations securities or types of portfolios. Identify
gain/loss components of portfolio for analysis.

10 Portfolio Income Identity non-income producing Identify securities with stale prices. Obtain Download of portfolio position match & sort / Portfolio Inventory
securities. metrics for price fluctuations and among detail over selected period of time statistics subledger
classes of securities or types of portfolios.

ACL Procedures: Cash & Invest Page 5 of 16

Receivables and Sales Related ACL Procedures

# Area Audit Test Purpose of Test Data Extracts Required ACL function Data Extract Source
1 A/R Aging Verify Aging Test Accuracy of Client Aging Invoice #, invoice date, open invoice Age A/R Subledger
amount

2 A/R Aging Age DR / CR in Portfolio Age DR and CR Item #, item date, open amount Age A/R Subledger

3 A/R Aging Customer Balances Identify sig. cust. in AR aging; test Customer #, customer name, item#, item Classify/summarize/ A/R Subledger
accuracy of cust. balances per client; date, open amount sort
identify cust. with net credit balances

4 A/R Portfolio Duplicate Invoices Identify duplicate invoices Invoice #, invoice date, invoice amount Sequence A/R Subledger

5 A/R Portfolio Classify Balances Quantify payments received vs. credit Customer #, customer name, item#, item Classify/summarize/ A/R Subledger (w/transaction history)
memos date, item amount sort or A/R transaction data

6 A/R Controls Collector Assignments Identify accounts without collectors Customer Master data: name, address, index Customer A/R master data
assignments contact, phone#, credit limit, balance, ship
to,

7 A/R Sampling CMA Sampling Perform CMA sampling of receivables Customer #, customer name, item#, item Sample A/R Subledger
date, open amount

8 A/R Controls Customers who are Identify any customers who are Customer #, customer name, item#, item join / match / merge Customer A/R master data; HR master
employees employees date, open amount

9 A/R Controls Company phone number as Identify any customers with contact Customer #, customer name, item#, item index Customer A/R master data
contact phone = Company phone date, open amount

10 A/R Controls Duplicate invoice Identify any duplicate invoices A/R invoice debit postings with invoice #; extract A/R FY invoice postings
numbers/etc. cust., name date, item number,
description

11 A/R Controls Employee associate Review associate purchases for large FY Employee purchases; name, date, statistics, index Employee purchases detail
purchases amounts amount, items, qty, payment history

12 A/R Controls Write-offs Determine validity of write-offs FY A/R system write-offs; legal A/R write- statistics, index All FY write-offs for specific accounts
offs data

13 A/R Controls Customers with PO Boxes Identify any customers with PO Boxes A/R Customer data index A/R master data

14 A/R Controls Customers with no contact Identify any customers with no phone A/R customer data index A/R master data
phone number number

15 A/R / Sales Sales / A/R match Identify all customers in sales that are not A/R customer data; Sales master data merge / join A/R and Sales master
in A/R

16 A/R Controls Duplicate accounts within the Identify any duplicates in A/R portfolio A/R customer data / Sales master data extract A/R and Sales master
portfolio
ACL Procedures: Receivables & Sales Page 6 of 16
Receivables and Sales Related ACL Procedures

# Area Audit Test Purpose of Test Data Extracts Required ACL function Data Extract Source

17 Loans Receivable Negative loan balances Identify loans recorded in error Loans Balances and Account #s statistics Loan Trial Balance

18 Loans Receivable Excessive low or high interest Identify interest rates recorded in error Loans Balances and Account #s statistics Loan Trial Balance
rates

19 Loans Receivable Loan maturity Identify loans that have matured or have Accounts #s, loan maturity date field statistics Loan Trial Balance
unreasonably long maturity dates

20 Loans Receivable Aging Determine current aging of portfolio Account #s, Date of last payment field classify/ sort Loan Trial Balance

21 Loans Receivable Average Balance o/s Determine level of concentration of bank's # of loans, total balance of loan portfolio calculate Loan Trial Balance
loan portfolio

22 Loans Receivable Loans per branch, location, or Determine level of activity by branch, Account #, location # classify/sort Loan Trial Balance
loan officer location or loan officer

23 Interest Income/ Calculate interest income or Determine if interest income or accrued Loan balance, interest rate calculate Loan Trial Balance
Accrued Interest accrued interest interest is reasonably stated

24 Sales Low/Negative margins Review customers with significant % of l/n FY Sales by customer by margin index Sales order data for FY or quarterly to
margins control volume

25 Sales / A/R Refunds Identify high volume refund customers Customer name; refund amount, date statistics A/R transaction data

26 Sales / A/R Refunds Identify refunds paid to Company Address, customer name; HR master join HR master; Refunds data
employees

27 Sales Returns Promotions Returns Determine return rates for promotional Sales by promo sku and returns by sku sort, filter, statistics Selected skus, promotions paid
products out/payroll; returns data from promo
date

28 Sales Returns Excessive Returns Identify higher than average returns over FY returns by vendor, sku, amount, statistics, filter Returns data for FY
time number of items

29 Due from Brokers Identify unsettled trades. Identify unsettled trades and if any Download of portfolio trading detail @ end sort & match Portfolio Activity or Trading Detail
Determine if they are outside violations of settlement requirements are of period.
settlement requirements occurring.

30 Earned / Unearned Valuation Recalculate account balance Company, Term, Expiration Date, Inforce Sort, Summarize, Inforce File
Premiums Amount Export

ACL Procedures: Receivables & Sales Page 7 of 16

Inventory and Purchasing Related ACL Procedures

# Area Audit Test Purpose of Test Data Extracts Required ACL function Data Extract Source

1 Inventory Aging Verify Aging Test Accuracy of Client Aging sku #, description, qty, unit cost, age Inventory subledger
last purch date, last sale date

2 Inventory Subledger Negative / $0 Cost Items Identify items with negative or zero cost sku #, description, qty, unit cost sort Inventory subledger

3 Inventory Subledger Negative Qty Items Identify items with negative qty sku #, description, qty, unit cost sort Inventory subledger

4 Inventory Subledger Duplicate Sku's, Costs Identify Duplicate Sku #, description or cost sku #, description, qty, unit cost sort/sequence Inventory subledger

5 Inventory Sampling CMA Sampling Perform CMA sampling of inventory sku #, description, qty, unit cost sample Inventory subledger

6 Distribution Cycle Count Adjustments Determine the cause of material cc warehouse cc adjustments data statistics/ index cycle count data
adjustments (classify cc adjustments)

7 Purchasing General Purchasing test Extract statistics for further sampling Purchases made: date, amount, statistics Purchases g/l
vendor, PO#

8 Purchasing Controls Purchases under review Identify purchases just under the $ limit that Purchases detail index Purchases g/l
limit requires more approval

ACL Procedures: Invty & Purch Page 8 of 16

Property, Plant & Equipment Related ACL Procedures

# Area Audit Test Purpose of Test Data Extracts Required ACL function Data Extract Source

1 PP&E Sampling CMA Sampling Perform CMA sampling of property item #, description, cost sample PP&E subledger
balances

2 PP&E Subledger Duplicate Items - PP&E Identify items with duplicate serial #'s, tag item #, tag#, serial #, sequence / sort PP&E subledger
overstatement #'s or descriptions description, cost

3 General Equipment issuance Determine validity of issuance (computers, List of items issued; HR master join / merger HR master; equipment
cell phones, call cards, etc.) data

ACL Procedures: PP&E Page 9 of 16

Payables and Disbursements Related ACL Procedures

# Area Audit Test Purpose of Test Data Extracts Required ACL function Data Extract Source
1 A/P Aging Verify Aging Test Accuracy of Client Aging invoice #, invoice date, invoice age A/P subledger
amount, due date

2 A/P Aging Age DR / CR in Portfolio Age DR and CR (in total & by vendor) vendor name, vendor #, invoice #, age / filter A/P subledger
invoice date, invoice amount, due
date

3 A/P Aging Customer Balances Identify significant vendors in A/P vendor name, vendor #, invoice #, classify/summarize/ A/P subledger
aging; test accuracy of vendor invoice date, invoice amount, due sort
balances per client; identify vendors date
with net debit balances

4 A/P Portfolio Duplicate Invoices Identify duplicate invoices invoice #, invoice date, invoice sort / sequence A/P subledger
amount, due date

5 A/P Portfolio Classify Balances Identify payments, credit memos, item #, item date, item amount, classify/summarize/ A/P subledger
chargebacks reference # / classification code sort

6 A/P Controls Vendor Assignments Identify vendors without reps Customer Master data: name, index Customer A/P master data
assigned address, contact, phone #, credit
limit, open balance, ship to, collector

7 A/P Activity Duplicate Payments Identify Duplicate Payments check# / wire #, amount, date, classify/summarize/ Check register / payment data
vendor/payee #, vendor invoice #, sort
amount

8 Deposits Negative deposit balances Identify deposits recorded in error Deposit Balances and Account #s statistics Deposit Trial Balance

9 Deposits Excessive low or high Identify interest rates recorded in Deposit Balances and Account #s statistics Deposit Trial Balance
interest rates error

10 Deposits/CDs CD maturities Identify CDs that have matured or Accounts #s, CD maturity date field statistics Deposit Trial Balance
have unreasonably long maturity
dates

11 Deposits Average Balance o/s Determine level of concentration of # of deposit accounts, total balance calculate Deposit Trial Balance
bank's deposits of deposit portfolio

ACL Procedures: Payables & Disburs Page 10 of 16

Payables and Disbursements Related ACL Procedures

# Area Audit Test Purpose of Test Data Extracts Required ACL function Data Extract Source
12 Deposits Deposits per branch, Determine level of activity by branch, Account #, location #, amount classify/sort Deposit Trial Balance
location location

13 Interest expense/ Calculate interest income Determine if interest income or Loan balance, interest rate calculate Deposit Trial Balance
Accrued Interest or accrued interest accrued interest is reasonably stated

14 Disbursements Avg. Number of Checks Quantify number of checks per month check # count Check register / payment data

15 Disbursements Avg Check/Payment $ Quantify average payment amount check #, check amount statistics Check register / payment data

16 Disbursements Payment Characteristics Determine payment characteristics check# / wire #, amount, date, summarize/statistics Check register / payment data
(e.g. large volume of check with low vendor/payee #, vendor invoice #,
$) amount

17 Disbursements Cash Flow Maximization Identify payments with discounts, check# / wire #, amount, date, summarize/sort Check register / payment data
payments at end of term vendor/payee #, vendor invoice #,
amount, terms, due date

18 Vendors Common vendor names Verify existence of vendors with Vendor master data: name, address, index A/P / Purchases master data
common names phone, contact name

19 Vendors Purchases fluctuation Identify large fluctuations as Purchases by vendor PY and FY comparison sort Purchases / A/P payments
compared to PY

20 Vendors Payments to unapproved Identify payments to unapproved Approved vendors/brokers list; FY join / match A/P check runs; Purchasing
vendors/brokers vendors/brokers A/P payments approved vendor list

21 Vendors Payments of manual Identify duplicate payments via Manual Check Log; FY A/P payments join / match A/P check runs, A/P manual
checks manual checks check log

22 Vendors Payments sent to PO Check validity of payments made to FY A/P payments index A/P check runs
Boxes PO Boxes

23 Vendors Vendors who are Identify any vendors that are Vendor master and HR master join / match / merge Vendor and HR Masters
employees employees

24 Vendors Check sequence Identify any checks out of sequence FY A/P Payments sequence analysis A/P check runs

25 Vendors Duplicate payments Identify any duplicate payments FY A/P Payments extract A/P check runs

ACL Procedures: Payables & Disburs Page 11 of 16

Payables and Disbursements Related ACL Procedures

# Area Audit Test Purpose of Test Data Extracts Required ACL function Data Extract Source

26 Vendors Duplicate POs Extract invoices posted with duplicate FY A/P Payments with invoice #, PO extract; statistics A/P check runs
PO's #, amount, payee, check#

27 Vendors No POs Summarize large invoices with no PO FY A/P Payments as above extract A/P check runs
numbers

28 Vendors PO vs. Invoice differences Identify PO vs. invoice differences Purchase orders / Invoice numbers match and sort Closed POs and invoices paid
paid

29 Vendors Consultants / 3rd party Verify propriety FY A/P Payments to 3rd parties / index; statistics A/P check runs
services Contractors

30 Vendors Independent valuations of Verify propriety FY A/P Payments to 3rd parties / index; statistics A/P check runs
items in trust or portfolio Contractors

31 Vendors Sequential Invoices Identify unusually close sequential Invoice numbers by vendor; date sequence Invoice A/P data
pattern of invoice numbers

32 Vendors Duplicate Invoices Identify duplicate invoices Vendor name, numbers, invoice date, sequence Vendor invoice A/P data
item description,
invoice amounts, invoice quantity
33 Vendors Vendors with same Identify vendors with same address Vendor master match Vendor master
address

34 Due to Brokers Identify short sales & Identify short sales in order to Download of portfolio detail sort & match Portfolio Inventory subledger
exposure to market, determine payable. Can also make
interest, or other risk risk assessment on payable by
sorting short sales by type.

35 Claims Account Characteristics Identify any unusual fluctuations over Policy #, Claim #, Payments, Sort, Summarize, Claims Data
the years, or within the current year. Remaining Reserves, Reported Date Statistics
Identify trends in data.

36 Claims Validity of Claims Comparison of extract to in-force Policy #, Claim #, Payments, Extract Claims Data
records Reserves, Reported Date

37 Claims Reserves Account Characteristics Identify any fluctuations over the Policy #, Claim #, Initial Reserve, Sort, Summarize, Reserve Data
years. Identify trends in data. Reserve Changes Statistics

ACL Procedures: Payables & Disburs Page 12 of 16

Payables and Disbursements Related ACL Procedures

# Area Audit Test Purpose of Test Data Extracts Required ACL function Data Extract Source
38 Claims Reserves Exceeding Limits Test reserves to determine if within Policy #, Claim #, Policy Limits, Sort, Summarize Reserve Data
policy limits. Reserve Amounts

ACL Procedures: Payables & Disburs Page 13 of 16

Vendor Related ACL Procedures

# Area Audit Test Purpose of Test Data Extracts Required ACL function Data Extract Source
1 Vendors Common vendor names Verify existence of vendors with common Vendor master data: name, address, index A/P / Purchasing master data
names phone, contact name

2 Vendors Purchases fluctuation Identify large fluctuations as compared to Purchases by vendor PY and CY comparison sort Purchases / A/P payments
PY

3 Vendors Payments to unapproved Identify payments to unapproved Approved vendors/brokers list; FY A/P join / match A/P check runs; Purchasing
vendors/brokers vendors/brokers payments approved vendor list

4 Vendors Payments of manual checks Identify duplicate payments via manual Manual Check Log; CY A/P payments join / match A/P check runs, A/P manual check
checks log

5 Vendors Payments sent to PO Boxes Check validity of payments made to PO CY A/P payments index A/P check runs
Boxes

6 Vendors Vendors who are employees Identify any vendors that are employees Vendor master and HR master join / match / merge Vendor and HR Masters

7 Vendors Check sequence Identify any checks out of sequence CY A/P Payments sequence analysis A/P check runs

8 Vendors Duplicate payments Identify any duplicate payments CY A/P Payments extract A/P check runs

9 Vendors Duplicate POs Extract invoices posted with duplicate CY A/P Payments with invoice #, PO extract; statistics A/P check runs
PO's #, amount, payee, check#

10 Vendors No POs Summarize large invoices with no PO CY A/P Payments as above extract A/P check runs
numbers

11 Vendors PO vs. Invoice differences Identify PO vs. invoice differences Purchase orders / Invoice numbers match and sort Closed POs and invoices paid
paid

12 Vendors Consultants / 3rd party Verify propriety CY A/P Payments to 3rd parties / index; statistics A/P check runs
services Contractors

13 Vendors Independent valuations of Verify propriety FY A/P Payments to 3rd parties / index; statistics A/P check runs
items in trust or portfolio Contractors

14 Vendors Sequential Invoices Identify unusually close sequential Invoice numbers by vendor; date sequence Invoice A/P data
pattern of invoice numbers

15 Vendors Duplicate Invoices Identify duplicate invoices Vendor name, numbers, invoice date, sequence Vendor invoice A/P data
item description,
invoice amounts, invoice quantity
16 Vendors Vendors with same address Identify vendors with same address Vendor master match Vendor master

ACL Procedures: Vendors Page 14 of 16

Vendor Related ACL Procedures

# Area Audit Test Purpose of Test Data Extracts Required ACL function Data Extract Source

17 Due to Brokers Identify short sales & exposure Identify short sales in order to determine Download of portfolio detail sort & match Portfolio Inventory subledger
to market, interest, or other payable. Can also make risk assessment
risk on payable by sorting short sales by type.

ACL Procedures: Vendors Page 15 of 16

Employee Related ACL Procedures

# Area Audit Test Purpose of Test Data Extracts Required ACL function Data Extract Source
1 Human Resources Payroll validity Identify duplicate addresses, ss#, HR data: employee name, ss#, address, chk duplicates search Payroll records
bank accts acct#, accrued vacation, vacation taken, overtime
billed, phone #

2 Human Resources Timely assoc. disposition Verify ex-employees no longer on List of terminated employees: employee name, join / match Payroll records; HR terminations
payroll ss#, address, chk acct#, accrued vacation,
vacation taken, overtime billed, phone #

3 Human Resources Match payroll with employee Verify only employees get paid HR data as above; Payroll run join / match Payroll records / HR master
master

4 Human Resources Vacation/Overtime Identify assoc. with no or minimal HR data: employee name, ss#, address, chk sort / index HR master; payroll records
vacation taken acct#, accrued vacation, vacation taken, overtime
billed, phone #

5 Human Resources Temp/Consultants validity Verify temp/consulting employees HR list of contractors by name, ss#, rate, sort/index/join/match/ HR contractors list; payroll records
and pmts department, payroll run statistics

6 General Equipment issuance Determine validity of issuance List of items issued; HR master join / merger HR master; equipment data
(computers, cell phones, call cards,
etc.)

ACL Procedures: Employees Page 16 of 16