Audit Module1
BILTRITE PRACTICE CASE
A Computerized Audit Practice Case
Description of the Practice Case
This case has two learning objectives. First, it provides the student an opportunity to apply auditing concepts to a “real-life” audit client. The client, Biltrite
Bicycles, Inc., operates within a unique business climate and internal control environment, and the student must assess inherent risk and control risk accordingly. The case contains modules involving sampling applications, risk assessment, audit documentation, analysis of design of controls, tests of details, audit adjustments, and an audit report upon completion of the 2009 engagement.
Second, the case enables the student to use the computer as an audit-assist device. The student may use the computer in the Biltrite case to both automate the fieldwork and assist in decision-making.
The case consists of modules. At the end of each module is a set of requirements. The student will need an PC and an Excel or Excel-compatible spreadsheet program, and the student should download the data files from the website www.rittenberg.swlearning.com under the tab “Student Resources.”
The modules parallel the phases of a financial statement audit. Many of the modules require both qualitative and quantitative analyses. Based on narrative material and on partially completed audit documentation, the student will be asked to complete the documentation, arrive at audit conclusions, and/or answer questions relating to specific auditing standards and interpretations. The following modules make up the Biltrite case:
Assessment of inherent risk
Assessment of control risk
Control testing the sales processing subset of the revenue cycle
PPS sampling—factory equipment additions
Accounts receivable aging analysis and adequacy of allowance for doubtful accounts
Module VI:
Sales and purchases cutoff tests
Module VII: Search for unrecorded liabilities
Module VIII: Dallas Dollar Bank—bank reconciliation
Module IX:
A Computerized Audit Practice Case
Description of the Practice Case
This case has two learning objectives. First, it provides the student an opportunity to apply auditing concepts to a “real-life” audit client. The client, Biltrite
Bicycles, Inc., operates within a unique business climate and internal control environment, and the student must assess inherent risk and control risk accordingly. The case contains modules involving sampling applications, risk assessment, audit documentation, analysis of design of controls, tests of details, audit adjustments, and an audit report upon completion of the 2009 engagement.
Second, the case enables the student to use the computer as an audit-assist device. The student may use the computer in the Biltrite case to both automate the fieldwork and assist in decision-making.
The case consists of modules. At the end of each module is a set of requirements. The student will need an PC and an Excel or Excel-compatible spreadsheet program, and the student should download the data files from the website www.rittenberg.swlearning.com under the tab “Student Resources.”
The modules parallel the phases of a financial statement audit. Many of the modules require both qualitative and quantitative analyses. Based on narrative material and on partially completed audit documentation, the student will be asked to complete the documentation, arrive at audit conclusions, and/or answer questions relating to specific auditing standards and interpretations. The following modules make up the Biltrite case:
Assessment of inherent risk
Assessment of control risk
Control testing the sales processing subset of the revenue cycle
PPS sampling—factory equipment additions
Accounts receivable aging analysis and adequacy of allowance for doubtful accounts
Module VI:
Sales and purchases cutoff tests
Module VII: Search for unrecorded liabilities
Module VIII: Dallas Dollar Bank—bank reconciliation
Module IX: