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Bradmark Comprehensive Case
Chapter 10 – Expenditure Cycle
Questions
Read The Bradmark Case located in the “Bradmark Case Description” folder and answer the following questions:
1) From the case description and the associated flowcharts, assess Bradmark’s internal controls over its expenditure cycle procedures.
2) Using the case description, the flowchart, the file structure, and financial data below, specify an audit objective (that can be achieved using ACL™) for each management assertion presented in the matrix below. For each audit objective, briefly describe the ACL test procedure.
Selected Financial data: Inventory Balance at 12/31/2004 $ 1,108,194.94
Management Assertion
Audit Objective
Audit Procedures to be Performed Using ACL
Completeness
Valuation or Allocation
Accuracy
To answer parts 3 and 4 requires that you install ACL™ Desktop Edition (full educational version) on your computer. To do so follow the instructions on the CD that came with the textbook. The ACL Project and ACL files used in the Bradmark case are located in the Bradmark Data Folder on the website. Download these files to your computer and click on the Bradmark 04 ACL icon. ACL will automatically open the case.
3) Perform the ACL tests outlined in step 2 above. The Project and ACL files for the Bradmark case are located in the Bradmark Data Folder. Hand in a report describing the audit tests and your conclusions about the results of the test. To document your findings include in your report ACL printouts showing details of test results and the command log.
4) Using the matrix format below identify an operational (business) risk related to the expenditure procedures. Briefly describe the audit objective and ACL procedures to answer this concern. Perform the ACL test and prepare a report with your conclusions. Document your report with ACL printouts showing details of test results and the command log.
Operational/Audit Risk (indicate which)
Chapter 10 – Expenditure Cycle
Questions
Read The Bradmark Case located in the “Bradmark Case Description” folder and answer the following questions:
1) From the case description and the associated flowcharts, assess Bradmark’s internal controls over its expenditure cycle procedures.
2) Using the case description, the flowchart, the file structure, and financial data below, specify an audit objective (that can be achieved using ACL™) for each management assertion presented in the matrix below. For each audit objective, briefly describe the ACL test procedure.
Selected Financial data: Inventory Balance at 12/31/2004 $ 1,108,194.94
Management Assertion
Audit Objective
Audit Procedures to be Performed Using ACL
Completeness
Valuation or Allocation
Accuracy
To answer parts 3 and 4 requires that you install ACL™ Desktop Edition (full educational version) on your computer. To do so follow the instructions on the CD that came with the textbook. The ACL Project and ACL files used in the Bradmark case are located in the Bradmark Data Folder on the website. Download these files to your computer and click on the Bradmark 04 ACL icon. ACL will automatically open the case.
3) Perform the ACL tests outlined in step 2 above. The Project and ACL files for the Bradmark case are located in the Bradmark Data Folder. Hand in a report describing the audit tests and your conclusions about the results of the test. To document your findings include in your report ACL printouts showing details of test results and the command log.
4) Using the matrix format below identify an operational (business) risk related to the expenditure procedures. Briefly describe the audit objective and ACL procedures to answer this concern. Perform the ACL test and prepare a report with your conclusions. Document your report with ACL printouts showing details of test results and the command log.
Operational/Audit Risk (indicate which)