Included with this book is a CD with an education version of ACL v. 7.2. The files needed for the .

following exercises are on the CD. Load ACL and open the project called "Workbook.acl."You I are now
ready to do any or all of the following exercises. Open the Accounts Reccivable file ("Ar"). Perform the
appropriate tests to answer the. following questions:

a. How many customers are there?

b. How many customers have negative balances, and what do these negative bal- ances total? What do
the negative balances mean?

c. How many customers have individual receivables for more than $1,000?.

d. What is the average amount of accounts receivable?

e. Stratify the receivables into ten strata. Click on Graphable Data to see the graph. Which strata has the
highest number of receivables?

f. Perform Benford analysis on the accounts receivable amounts. What are some i possible explanations
for these results? How would you as an auditor proceed?

g. Open the Accounts Payable transaction file (Ap trans). Perform the appropriate tests to answer the
following questions:

h. How many transactions are there in this file?

i. How many vendors are represented in this file?

J. Determine if there are any gaps in invoice numbers. Would this be of concern to you as an auditor?
What would you do to reconcile the differences.

k. Are there any duplicate invoice numbers? How would you resolve this discrepancy?

L. Which vendors purchase inventory items of more than $100 each?

m. Age the accounts payable file as of December 31, 2000. Click on Graphable DataI to see a visual of the
results. If you were auditing this company and got these l results, would you be concerned? Explain.

n. Do any vendors have post office boxes as their street address?

o. Perform Benford analysis on the accounts payable invoice amounts. Is there any evidence of fraud in
payables? How would you as an auditor proceed?

12 Open the Inventory file. Perform the appropriate tests to answer the following questions.

a. How many different inventory items are maintained by this company?

b. How many inventory items are sold at Location 3?

c. What is the average cost of an inventory item? What is the most expensive and least expensive
inventory item?

d. What is the profit on inventory item # 034255003?

f. How many products have a status of"U"?. Are there any products for which the sales price is less than
the unit cost? Would . you be concerned about this as an auditor?

g. Are there any products on hand for which the quantity on hand is less than the reorder point, but
which do not have any quantity on order? Is this a problem? Why or why not?

h. What is the total market value of the inventory?

8-13 Open the employee master file (Limpmst). Perform the appropriate tests to answer the following
questions.

a. How many total employees are there? How many male and bow many female employecs are there?
How many cmployees have a college degree? Assume an education level of six. teen years is equivalent
to n college degree. What is the average cmplayee annual salary? What are the highest and lowest salary
amounts?. Do any employees appear to be grossly over- or underpaid? How would you , investigate this?
f. Have any employees received unusually large bonuses or commissions?. Are there any cemployees
with the same address? Would this be of concern to you as an auditor? Do any cmmployees appear to
be related? Do nny work in the same department?. Explain how you tested this. 8-14 Open the Payroll
file, Perform the following tests. Are there any duplicate check mumbets? b. Are there any gaps in payroll
check numbers? Does gross pay less taxes equal net pay in all cases?