IT Audit Exercise Workbook

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EXERCISE WORKBOOK
FOR STUDENTS
FASTTRACK IT ACADEMY l GF King’s Court Bldg II., Chino Roces cor. Delarosa Sts., Makati City 1200, Philippines l Telephone Number: 63.2.759.4348 l www.fitacademy.ph
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Table of Contents
1. SAP on Cloud Platform.............................................................................................................................3
Exercise 1.1..............................................................................................................................................3
2. Basic Navigation......................................................................................................................................3
Exercise 2.1..............................................................................................................................................3
3. Introduction to IT Audit...........................................................................................................................4
Exercise 3.1..............................................................................................................................................4
4. Test of Controls.......................................................................................................................................5
Exercise 4. 1.............................................................................................................................................5
Exercise 4. 2.............................................................................................................................................6
Exercise 4. 3.............................................................................................................................................7
Exercise 4. 4.............................................................................................................................................8
Exercise 4. 5...........................................................................................................................................12
Exercise 4. 6...........................................................................................................................................15
Exercise 4. 7...........................................................................................................................................18
Exercise 4. 8...........................................................................................................................................21
5. Substantive Testing................................................................................................................................26
Exercise 5. 1a.........................................................................................................................................26
Exercise 5. 1b.........................................................................................................................................28
Exercise 5. 1c.........................................................................................................................................30
Exercise 5. 2...........................................................................................................................................32
Exercise 5. 3...........................................................................................................................................34
Exercise 5. 4...........................................................................................................................................36
Exercise 5. 5...........................................................................................................................................38
Exercise 5. 6...........................................................................................................................................39
Exercise 5. 7...........................................................................................................................................41
Exercise 5. 8...........................................................................................................................................42
Exercise 5. 9...........................................................................................................................................43
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1. SAP on Cloud Platform

Exercise 1.1
Identify the terminologies being described by each sentence.
1. This is a business management software that allows an organization to use a system of integrated applications to
manage the business. It aims to serve as a backbone for your whole business. _________
2. This is also known as Internal Cloud, is a cloud-based infrastructure operated exclusively for a single organization
with all data protected behind an internal firewall. _________
3. This is also known as External Cloud, is available to the public where data are created and stored on third-party
servers. _________
4. This is a key feature of cloud computing where resources can be accessed anywhere (except on limitations set
by company's internal control). _________
5. This the place where SAP, a European multinational software corporation, was founded in 1972. __________
2. Basic Navigation
Exercise 2.1
Fill each blank with the appropriate words or terminologies that will make the statements correct.
1. The ______________ displays at the top of the screen. It contains the Windows standard menu
(File, Edit, W window, Help) as well as generic SAP Business One functions.
2. The _____________ is a collection of icon buttons that grant you easy access to commonly-used
functions.
3. Navigation in SAP Business One is done using the _____________. It arranges the functions of the
individual applications in a tree structure.
4. The users of SAP Business One are defined in the _____________ window.
5. Accessing SAP Business One on Cloud is done using _____________ like Google Chrome, Mozilla
Firefox or Safari.
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3. Introduction to IT Audit
Exercise 3.1
Fill each blank with the appropriate words or terminologies that will make the statements correct.
1. ______________is the examination and evaluation of an organization's information technology

infrastructure, policies and operations.
2. The first step in an IT Audit is _____________.
3. On the course of an IT Audit we encounter materially significant findings. What should we do?
_______________.
4. What does CAATs stands for? _____________
5. ______________ are specific and unique controls specific for computerized applications.
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4. Test of Controls
Exercise 4. 1
Transaction Authorization
1. Perform test on transaction authorization using the Sales Order document

inputting the following information:
Customer: C1100
Delivery Date: Today
Item No: L1000
Quantity: 20
Try to move to another field
Insert Screenshot:
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Exercise 4. 2
Transaction Authorization
2. Perform test on specific user authorization using the Purchase Order document
inputting the following information:
Vendor: V1000
Item No.: A1000
Quantity: 50
Unit Price: 25,000
Click Add
Insert Screenshot:
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Exercise 4. 3
Segregation of duties
1. What modules or Functions inside the System does the student account have no
authorization?
______________
2. What user accounts has limited access to the RU, Laptop, Co.
Give three answers.
1. __________
2. __________
3. __________
Insert Screenshot:
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Exercise 4. 4
Accounting Record
1. Show a sample screenshot of the following documents and Reports necessary for accountants &
auditors:
a. Purchase Order to Outgoing Payment Relationship Map
b. Sales Order to Incoming Payment Relationship Map
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c. Transaction Journal Report for all Transactions performed on the month of January to June for year
2013.
d. General Ledger for the year 2013
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e. Unadjusted Trail Balance for the year 2013
f. Profit and Loss Statement for the year 2013
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g. Balance Sheet for the year 2013
h. Post-Closing Trail Balance for the year 2013
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Exercise 4. 5
Source Doc Control
1. View the list of a particular document to identify if there is any document missing by double
checking the numbering of source documents.
Perform the test on the following Marketing documents:
a. Sales Order
Insert Screenshot:
Are there any irregularities on the numbering series of the system? Explain your answer briefly.
______________
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b. Purchase Order
Insert Screenshot:
_________________
c. A/R Invoice
Insert Screenshot
_______________
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2. List down Open Items by comparing the document numbers of Sales Order and A/R Invoices
Insert Screenshot:
3. List down Open Items by comparing the document numbers of Purchase Order and A/P Invoices
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Exercise 4. 6
DATA Coding Control
1. View the list of Business Partners and examine if the codes used were according to the
adapted BP Codes of the Company.
a. Are there any irregularities on the Customer Codes?
Insert Screenshot:
b. Are there any irregularities on Customer Names?
Insert Screenshot:
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c. Are there any irregularities on the Vendor Codes?
Insert Screenshot:
d. Are there any irregularities on Vendor Names?
Insert Screenshot:
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e. Are there any irregularities on the account balances?
Insert Screenshot:
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Exercise 4. 7
Field Integration
1. Perform the Missing Data Check on Purchase Order Document. Screenshot Error message
Insert Screenshot:
2. Perform the Numeric-alphabet data checks on Purchase Order Document. Screenshot Error message
Insert Screenshot:
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3 a. Perform a Limit check on the purchase Order Document. Screenshot Error message
Insert Screenshot:
3 b. How many characters are allowed on the Vendor Code?
Insert Screenshot:
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4. Perform Validity Check on Business Partner Master Data. Screenshot Error message
Insert Screenshot:
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Exercise 4. 8
Audit Trail Controls
1. Generate the Journal Entry of the following Invoices:
A/R Invoice No. 7
Insert Screenshot:
A/R Invoice No. 10
Insert Screenshot:
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A/R Invoice No. 14
Insert Screenshot:
A/R Invoice No. 25
Insert Screenshot:
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A/R Invoice No. 32
Insert Screenshot:
A/R Invoice No. 33
Insert Screenshot:
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2. Generate Relationship Map of each Invoice
Insert Screenshot:
3. Which of the following Invoices are still outstanding or uncollected?

_________________
_________________
_________________
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4. How much is the Total Trade Receivable (before any adjustments)?
Insert Screenshot
5. How will you treat negative balances on subsidiary ledgers/customer account? Explain briefly
___________
___________
___________
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5. Substantive Testing
Exercise 5. 1a
Review Sales Document Balances for Unusual Trends and Exceptions
1. Generate query report for all Sales Order with the following data:
Table Field: ORDR
Select: DocNum, DocDate, CardCode, CardName, DocTotal
Insert Screenshot
2. Did you encounter any irregularities on the Report? Explain Briefly

__________
__________
__________
3. What actions will you take?
__________
__________
__________
4. Is there a need for us to propose Adjusting Entries?

__________
__________
__________
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5. If Yes, what would be the entry?
Insert Screenshot
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Exercise 5. 1b
1. Generate query for Customer-Business Partner Master Data with the following data:
Table Field: OCRD
Select: CardCode, CardName, CardType, BalanceSys
Where: CardType ='C'
Insert Screenshot

__________
__________
__________
__________
__________
__________

__________
__________
__________
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Insert Screenshot
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Exercise 5. 1c
1. Generate query for Customer-Business Partner Master Data with the following data:
Table Field: OCRD
Select: CardCode, CardName, CardType, BalanceSys
Where: CardType ='C'
Sort by: CardName
Insert Screenshot

__________
__________
__________
__________
__________
__________

__________
__________
__________
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Insert Screenshot
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Exercise 5. 2
Testing the Valuation and Allocation Assertions
1 Open the Aging Report of the customer balances
Insert the following criteria:

Code: From: C1100 To: C2200
Aging Date 12.31.13
Insert Screenshot
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2. Compute the amount of Allowance for Doubtful Accounts. According to the industry experiences,
the collectability of accounts are as follow:
0 – 1 month = 100%
Over one month not over two months = 98%
Over two months not over three months = 95%
Over three months not over four months = 92%
Over four months = 90%
Show Computations:
____________
____________
_____________
3. What would be the proposed adjusting entry?
Insert Screenshot
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Exercise 5. 3
Review of Liabilities Unusual Trends and Exceptions:
1. Generate query for A/P Invoice with the following data:

Table Field: OPCH
DocNum, DocDate, CardCode, CardName,
Select: DocTotal
Sort by: DocTotal
Insert Screenshot

__________
__________
__________
__________
__________
__________

__________
__________
__________
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Insert Screenshot
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Exercise 5. 4
Testing Completeness Assertions
1. Match all GRPO documents with the A/P Invoices Processed. Are there any irregularities?
Insert Screenshot

__________
__________
__________
__________
__________
__________

__________
__________
__________
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Insert Screenshot
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Exercise 5. 5
Testing the Existence Assertion
Examine the Subsequent records of liabilities and perform necessary

tests.
Client provided the following documents and Information:

a. Rental for Offices used in operations are paid on the following month
b. Light, Water, Telephone, Internet Billings are also paid on the following month
c. The clients accountant is having doubt if he performed accruals on payroll accounts for the month of
December.
1. What is the difference between tracing and vouching?

_____________________________________
_____________________________________
_________________________
2. In the test for existence, the procedures performed is commonly vouching of source documents
rather than tracing. True or False?
___________________________
___________________________
___________________________
3. What would be the proposed adjusting entries?
Insert Proposed Entry:
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Exercise 5. 6
Audit of Cash
1. Reperform Bank Reconciliation for Metrobank Account No. 9021.
Ref.
Balance per Bank 184,871.20
No.
Add: Deposits in
Transit
Less: Outstanding
Checks
Total adjustments
Adjusted Balance
Balance per Book 1,101,550.40

Add:
Less:
Total Adjustments
Adjusted Balance
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2. What would be the proposed adjusting entries?
Insert Screenshot
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Exercise 5. 7
Audit of Inventories
Exercise:
1. Reperform the Cost vs. NRV Procedures.

Laptops Cost NRV Difference
2. Write down your findings and proposed adjusting entries
____________________
____________________
____________________
Insert Screenshot
3. Complete the sentence:
Under GAAP, Inventory is recorded as the lesser of _____ or ______.
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Exercise 5. 8
Audit of Prepayments
According to company’s personnel, the estimated remaining Office Supplies is 20% of the original
purchased amount. As for the insurance, upon examination of the Insurance Contract, it is for 2 years
starting on its purchase date which is also the posting date. Do the same procedure for Insurance
Expense. (Hint: The insurance premium is recorded using Expense Method)
1. Insert Screenshots of General Ledger showing office Supplies
2. Write down your findings and proposed adjusting entries

__________________
__________________
__________________
Insert Screenshot
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Exercise 5. 9
Audit of Fixed Asset
1. Compute the depreciation expense for the fixed assets. Use the table below for your computation.
Acquisition Acquisition Salvage Yearly 2013
Fixed Asset Date Cost Value Depreciation Depreciation
Office
Equipment
Office Furniture
Delivery Truck
Leasehold
Improvements
TOTAL DEPRECIATION FOR 2013
2. Note your findings below and your proposed adjusting entries:
Insert Screenshot
-----nothing follows------
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726775150.docx printed on 2/12/2024 4:10 PM

726775150.docx printed on 2/12/2024 4:10 PM

1. SAP on Cloud Platform

726775150.docx printed on 2/12/2024 4:10 PM

1. ______________is the examination and evaluation of an organization's information technology

2. The first step in an IT Audit is _____________.

4. What does CAATs stands for? _____________

726775150.docx printed on 2/12/2024 4:10 PM

1. Perform test on transaction authorization using the Sales Order document

Try to move to another field

726775150.docx printed on 2/12/2024 4:10 PM

726775150.docx printed on 2/12/2024 4:10 PM

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a. Purchase Order to Outgoing Payment Relationship Map

b. Sales Order to Incoming Payment Relationship Map

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d. General Ledger for the year 2013

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e. Unadjusted Trail Balance for the year 2013

f. Profit and Loss Statement for the year 2013

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g. Balance Sheet for the year 2013

h. Post-Closing Trail Balance for the year 2013

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Perform the test on the following Marketing documents:

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a. Are there any irregularities on the Customer Codes?

b. Are there any irregularities on Customer Names?

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c. Are there any irregularities on the Vendor Codes?

d. Are there any irregularities on Vendor Names?

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e. Are there any irregularities on the account balances?

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3 b. How many characters are allowed on the Vendor Code?

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1. Generate the Journal Entry of the following Invoices:

A/R Invoice No. 7

A/R Invoice No. 10

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A/R Invoice No. 14

A/R Invoice No. 25

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A/R Invoice No. 32

A/R Invoice No. 33

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2. Generate Relationship Map of each Invoice

3. Which of the following Invoices are still outstanding or uncollected?

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4. How much is the Total Trade Receivable (before any adjustments)?

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2. Did you encounter any irregularities on the Report? Explain Briefly

3. What actions will you take?

4. Is there a need for us to propose Adjusting Entries?

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5. If Yes, what would be the entry?

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2. Did you encounter any irregularities on the Report? Explain Briefly

Under GAAP, Inventory is recorded as the lesser of _ or __.