Description The purpose of this critical thinking assignment is to help you identify relevant quest ...
Description The purpose of this critical thinking assignment is to help you identify relevant questions that may be answered using data analytics in auditing. In this assignment, we evaluate how one might use master and transaction data from an Enterprise Resource Planning (ERP) system to perform data analytics to assist the financial statement audit. Complete Lab 1-3: Data Analytics in Auditing (Attached) . When completed, answer the following questions: Identify three different questions that might indicate internal control weakness specially internal controls over the order-to-cash process . Type your three questions in your document. Identify the data that you would need to answer each of your questions. For example, to determine the timing of approval and who is involved, you might need the approver id., the order date, and the approval date. Add your required data sources to each question in your document. Part 2: Master the Data Access the COSO Framework and located the Internal Control category and Principles that are relevant to Cash. Locate the “Audit Data Standards Library—AICPA,” then look for the “Audit Data Standard—Order to Cash Subledger Standard” PDF document. Read and review the document for fields that relate to each question you identified in Part 1. For example, if you’re looking for the shipment timing and approval data, you would need the Shipments_Made_YYYYMMDD_YYYYMMDD table and Approved_By, Entered_Date, and Approved_Date fields. List the tables and fields from the audit data standard in your document needed for each question. List the relevant COSO Category and Principles. Additionally add the COSO approaches for each question that apply. Identify any data that don’t appear in the audit data standard that might also be relevant to your questions. Required: Discuss in detail each of the components above. Prepare an Excel table with the fields required above. Your well-written paper must be 3-4 pages in addition to title and reference pages,page paper must include five references, and at least two being scholarly/peer-reviewed discovered through the CSU-Global library. 2 attachments Slide 1 of 2 attachment_1 attachment_1 attachment_2 attachment_2 UNFORMATTED ATTACHMENT PREVIEW Lab 1-3 Data Analytics in Auditing The purpose of this lab is to help you identify relevant questions that may be answered using data analytics in auditing. Let's evaluate how we might use master and transaction data from an enterprise resource planning system to perform some simple data analytics to assist the financial statement audit. Company summary ABC Company is a large retailer that collects its order-to-cash data in a large ERP system that was recently updated to comply with the AICPA's audit data standards. ABC Company currently collects all relevant data in the ERP system and digitizes any contracts, orders, or receipts that are completed on paper. The credit department reviews customers who request credit. Sales orders are approved by managers before being sent to the warehouse for prepa- ration and shipment. Cash receipts are collected by a cashier and applied to a customer's outstanding balance by an accounts receivable clerk. You have been assigned to the audit team that will perform the internal controls audit of ABC Company. Technique Familiarity with database structure and primary-foreign key relationships may be helpful Software needed • Word processor • Web browser • Screen capture tool (Windows: Snipping Tool; Mac: Cmd + Shift + 4) In this lab, you will: Part 1: Identify appropriate questions and develop a hypothesis for each question. Part 2: Translate questions into target fields and value in a database and perform a simple analysis. Part 1: Identify the Questions Your audit team has been tasked with identifying potential internal control weaknesses within the order-to-cash processes. 1. Create a new word processing document and name the file “Lab 1-3 Data Analytics in Auditing Lab - [Your name] [Your email address).” 2. Use what you know about internal controls over the order-to-cash process (or search the web if you need a refresher) to identify three different questions that might indi- cate internal control weakness. For example, if you suspect that a manager may be delaying approval of shipments sent to customers, your question might be “Are any shipping managers approving shipments more than 2 days after they are received?" Type your three questions in your document. 3. Next to each question generate a hypothetical answer to each question to help you identify what your expected output would be. You may use some insight or intuition or search the Internet for ideas on how to inform your hypothesis. For example: “Hypothesis: Only 1 or 2 shipping managers are approving shipments more than 2 days after they are received." 4. Finally, identify the data that you would need to answer each of your questions. For example, to determine the timing of approval and who is involved, you might need the approver id, the order date, and the approval date. Add your required data sources to each question in your document. 5. Save your document. Part 2: Master the Data To answer your questions, you'll need to evaluate the data that are available in the audit data standards. 6. Open your web browser and search for "Audit data standards order to cash.” Follow the link to the “Audit Data Standards Library-AICPA,” then look for the “Audit Data Standard-Order to Cash Subledger Standard” PDF document. 7. Quickly scan through the document for fields that relate to each question you identi- fied in Part 1. For example, if you're looking for the shipment timing and approval data, you would need the Shipments_Made_YYYYMMDD_YYYYMMDD table and Approved _By, Entered_Date, and Approved_Date fields. List the tables and fields from the audit data standard in your document needed for each question. 8. Identify any data that don't appear in the audit data standard that might also be relevant to your questions. 9. Save your document and submit it to your instructor. End of Lab Purchase answer to see full attachment Tags: Data Analytics Enterprise Resource Planning Business Environment ABC Company leadership duties User generated content is uploaded by users for the purposes of learning and should be used following Studypool's honor code & terms of service.
