Terida
Bradmark Comprehensive Case
Chapter 9 – Revenue 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 revenue cycle procedures.
2) Using the case description, the flowchart, the file structures, and the selected 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. As an example, the first row in the matrix has been completed for you.
Selected Bradmark Financial Data
Sales 5,379,996.96
Accounts Receivable 4,752,257.70
Allowance for Doubtful Accounts (.02 x Sales) 107,600
Net Accounts Receivable 4,644,657.70
|Management Assertion |Audit Objective |Audit Procedures to be Performed |
| | |Using ACL |
|Existence or Occurrence |Verify that the AR represents |Use ACL to prepare confirmation |
| |actually owed to Bradmark |letters for customers |
|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 instruction 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.
Chapter 9 – Revenue 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 revenue cycle procedures.
2) Using the case description, the flowchart, the file structures, and the selected 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. As an example, the first row in the matrix has been completed for you.
Selected Bradmark Financial Data
Sales 5,379,996.96
Accounts Receivable 4,752,257.70
Allowance for Doubtful Accounts (.02 x Sales) 107,600
Net Accounts Receivable 4,644,657.70
|Management Assertion |Audit Objective |Audit Procedures to be Performed |
| | |Using ACL |
|Existence or Occurrence |Verify that the AR represents |Use ACL to prepare confirmation |
| |actually owed to Bradmark |letters for customers |
|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 instruction 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.