Segregation of duties accounts receivable

IDEA Problem 11

There is technical assistance available for the educational version of IDEA, please contact technical support: 1-888-641-2800 Option#4 or email the help desk at HelpDesk@audimation.com

Review the samples in the IDEA Manual , Section 2-Accounts Receivable. NOTE: the page numbers will vary depending on the manual you are using due to operating system differences in your computers.

Hint : Staying actively involved while reviewing the tutorial assignment will help you to complete the IDEA problems more efficiently.

Please submit your answers to the following problems to your instructor in a Word document. You may need to take a screen shot of your results and copy them into the Word document to upload if asked to perform any analysis using the software

Problem 11a

You are going to import the file called Reynolds Company_AR into the IDEA program. Hint: Be sure to check the box so that the first row is the field names.

After reviewing a list of parties related to Reynolds Company, you notice that the customers with customer numbers 803882 and 512198 are related to owners of the company. Hint: Modify the customer field to numeric with 0 decimal places.

· Use the Reynolds Company AR table to determine the amount of accounts receivable that relates to sales made to these related-party customers. Print screen the results to submit with your answer to this problem.

· What percent of total accounts receivable are made up of sales to these two related-party customers? Hint: Use Control Totals. Print screen the results to submit with your answer to this problem.

Clear all criteria uses

Problem 11b

Continue using the file called Reynolds Company_AR. Answer the following:

Possible misstatements that may occur during the cash receipts process result from cash receipts being received, but not recorded (which could facilitate embezzlement). A control technique that is used to mitigate the risk of such misstatements is to segregate the duties of the accounts receivable department, general ledger accounting records, and cash receipts. The employee who completed each duty is required to sign his/her initials and evidence of this has been provided to you in the AR table. IN each transaction, proper segregation of duties is accomplished when no two duties have been completed by the same person. Use IDEA and the information from the Reynolds Company_AR file to determine in which transactions segregation of duties was not properly implemented.

· In which transactions were segregation of duties not implemented? Print screen the results to submit with your answer to this problem.

Print Screen the History file to submit later.

IDEA Problem 12

There is technical assistance available for the educational version of IDEA, please contact technical support: 1-888-641-2800 Option#4 or email the help desk at HelpDesk@audimation.com

Review the samples in the IDEA Manual , Section 3-Accounts Payable. NOTE :the page numbers will vary depending on the manual you are using due to operating system differences in your computers.

Hint : Staying actively involved while reviewing the tutorial assignment will help you to complete the IDEA problems more efficiently.

Please submit your answers to the following problems to your instructor in a Word document. You may need to take a screen shot of your results and copy them into the Word document to upload if asked to perform any analysis using the software

Import and open the file called Reynolds Company_AP.

Problem 12a

As a part of the audit of Accounts Payable, you want to identify all invoices greater than $50,000 so that you can vouch the transaction to original documentation (i.e. approved purchase order, receiving records).

· Use IDEA to identify all Accounts Payable invoices greater than $50,000 and compute the total value of those transactions. Print screen the results to submit in with your answer for this problem.

· Why is it important for auditors to determine if large purchases are properly authorized?

Print Screen the History file to submit later.

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Submit your answers to Problems 11 and 12 in the same Word document. Be sure to label your answers clearly with the problem numbers and clearly identify the print screens of your results including the history files.

Adapted from: McGraw Hill Companies, In 2016 IDEA S-1 Solutions Manual, IDEA Assignments