Part 1

Numbers 1-5 are the same as the problem on P. 487, 9-56

We are given 4 questions in the instructions; however, the answer sheet template requires us to give 5
answers. I have no idea what her answer key looks like, so I don’t know if we are just answering 4
questions or 5 questions. I have inserted the missing question, number 1, but I am not sure if we need
to answer this first one. I also want to point out that these questions were intended for ACL (Audit
Command Language) but can probably be completed in Excel. Here is the question, straight from the
book (I think some of the hints are for ACL):

You are auditing Accounts Receivable of HUSKY Corp. as of December 31, 2013. The Accounts Receivable
general ledger balance is $4,263,919.52. Access the textbook’s resources on the Cengage website. The
files are labeled “HUSKY Unpaid Invoices 2013” (the 12/31/2013, unpaid invoices), “HUSKY Shipping File
2013” (contains the shipment numbers and shipment dates for those invoices), and “HUSKY Credit Limit
2013” (contains each customer’s credit limit). Sales are made FOB shipping point. The auditor has
verified that the last shipment in 2013 is numbered 62050 and that shipping numbers have been used in
proper sequence.

1. Foot the file of unpaid invoices using the menu option Analyze, then Statistical, then Statistics and
agree to the general ledger. Print the statistics for the audit documentation and note the other statistics
provided. (Not sure if we need to answer this one)

2. Identify customers with balances over their credit limit and print out the results. (Hint: Before
combining files, be sure the matching fields, such as CUSTNUM or INVNUM, have been changed in each
table from a number format to ASCII format using the menu item Edit then Table Layout. Double-click on
the field you want to change).

3. Perform a sales cutoff test to identify any invoices for which sales were recorded in 2013 but shipment
was not made until 2014 and print out the results, including the total of those invoices.

4. Age the unpaid invoices as of December 31, 2013, print the aging and graph of the aging, extract (by
double-clicking on the over 45 days aging indicator) and print out a list of invoices over 45 days old that
also shows the total of those invoices.

5. Summarize your results and describe what procedures should be performed based on those results.
Use ACL to stratify the population of customer balances, print the results, and describe how this
information could be used to help determine which balances to confirm.

Numbers 1-3 and Part 2 are the same as the problem on P. 640, 11-58
We are given 3 questions in the instructions; however, the answer sheet template gives a, b, ci, cii, di,
and dii. Just like before, we are missing a question in the instructions. Also, like I said earlier, I don’t
know which answers are on the answer key. I have inserted the missing question, letter a, but I am not
sure if we need to answer this first one. Here is the question straightt from the book, minus the little
table:

Assume that you are auditing inventory of HUSKY Corp. as of December 31, 2013. The inventory general
ledger balance is $8,124,998.66. HUSKY manufactures lawn and garden tractors, snowmobiles, and
supplies. Download the data file labeled “HUSKY Inventory 2013” from the book’s website under Student
Resources.

1 or a. Using the menu option Analyze, choose Statistical then Statistics on the amount field, print the
statistics, and agree the total inventory to the general ledger. (Not sure if we need to answer this one)

2 or b. Extract and print out all inventory items that have not been used or sold in six months. Include in
the printout the total extended cost of those items.

3 or c. Extract the finished goods into a separate file (Hint: Use the expression SNUMB“F”5 ):
i. Extract those items that have a net realizable value less than cost. Add a column and calculate the
amount each of those items that should be written down, and print a report that includes those items
and the total of the write-down.
ii. Add a field and calculate inventory turnover for each item in inventory. Extract and print a report of
those items with a turnover less than 2. The report should include the total extended cost of those
items.

4 or d. Extract the raw materials into a separate file (see hint in Part c, but replace “F” with “R”):
i. Extract those items that have a replacement cost less than cost, add a column and calculate the
amount each of those items that should be written down, and print a report that includes those items
and the total of the write-down.
ii. Add a column and calculate inventory turnover for each item. Extract and print a report of those items
with a turnover less than 2. The report should include the total extended cost of those items.

Part 2

This is just letter E of the above problem:

e. Prepare a report of the audit implications of your findings, indicating any additional procedures that
should be performed.