Metaphor Case Study

PART I

For this problem, use “Metaphor_APTrans_2002 file in ACL_Demo.”

The suggested command or other source of information needed to solve the problem requirement is included at the end of each question.

REQUIRED:

A. Run the following ACL tests:

1. Total the Invoice Amount column for comparison with the general ledger balance of $276,841.33 (Total Field).

2. Recalculate unit cost times quantity and identify any extension misstatements (Filter).

3. Products that Metaphor purchases should not exceed $100 per unit. Print any purchase for subsequent follow-up where unit cost exceeded that amount (Filter).

4. Identify the three vendors from which the largest total dollar accounts payable transactions occurred during 2002 (Summarize
and Quick Sort).

5.
For each of the three vendors in question 4, list any transactions that exceeded $15,000 for subsequent follow-up. Include the vendor number, invoice number, and invoice amount (Filter. Note that the Vendor Number is actually a character rather than a number, so you need to enclose it in quotes when using it in an expression.).

6. Vendor numbers 10134 and 13440 are parties related to Metaphor. Print any accounts payable transactions with these two vendors (Filter). Also, determine the total amount of transactions with each vendor (Summarize).

Note: 1 mark for each test performed and result of the test to a total of 6 marks

B. For each of the computer-assisted audit procedures listed in part (a), identify the audit objective(s) associated with the test. Justify your response. (1 mark for each test each, total of 6 marks)

C. For each of the procedures listed in part (a), state the fraud risk that is addressed by the audit procedure. Justify your response. (1 mark for each test, ½ mark each, total of 3 marks)

D. Identify audit procedures that are required to follow up any unusual results from each ACL audit test ran in a. Explain the purpose of each audit procedure. (1 mark each, total of 6
marks)

For part B, C, and D, use the following table format for your answer:

Part B. Audit objective for the ACL tests with reasons | Part C. Fraud risk addressed by the audit procedure, with reason. | Part D. Follow-up test required, with purpose. | | | |

Part II

Use the following two files:

1) Metephore 2002 AR – a listing of open invoices at December 31st, 2002

2) Metaphore customers US – a listing of approved customers

Assume you are conducting the December 31st, 2002 Audit. Conduct 3 substantive tests using generalized audit software on the accounts receivable file. For each test, complete the following:

A. Describe the test. ( 1 mark for each test, total of 3 marks)

B. Describe (not just state) one audit assertion associated with your audit test. (1 mark for each test)

C. What are the expected results of your audit test? What else would you do with the information from your audit test? What did you find? (2 marks for each test)

D. (a) If the result matches your expected results, what does this mean for the conduct of the audit? (1 mark)

(b) If the result does not match your expected results, what does this mean for the conduct of the audit? [For potential weaknesses, you need to describe a weakness investigation test.] (1 mark for each test)