You have been asked to assist in the planning and development of audit data analytics as a substantive test for Cloud 9. Cloud 9 uses an evaluated receipt settlement system (see Chapter 12) that involves electronic invoice presentment and payment (EIPP) for 90% of its purchase transactions. The following information is captured electronically within this system.

Required

Plan a substantive test of purchase transactions using ADA as a substantive test. When planning the substantive test, identify the following:

a. What is (are) the assertion(s) being tested?

b. What information are you comparing electronically for each assertion?

c. What electronic evidence would represent a misstatement for each assertion?

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Field Description A unique identification number for each vendor Vendor's mailing address excluding city, state, post (zip) code Database Vendor Master File Field Code Data Type 6-digit number Data Input By Cloud 9 Vendor_ID Cloud 9 Text Vendor_ADD Vendor_CITY City associated with Vendor_ADD Text Cloud 9 Vendor_STATE State associated with Vendor_ADD Text Cloud 9 Vendor_PC Vendor post (zip) code Text Cloud 9 Vendor COUN Country associated with Vendor_ADD Text Cloud 9 Vendor Bank Routing number and account number for vendor Numeric data Cloud 9 Account Number Vendor Credit Limit Amount of credit extended by the vendor 9-digit number Cloud 9 EIPP Databasec Vendor_ID A unique identification number for each vendor 6-digit number Cloud 9 A unique transaction number that follows each transaction from order (serves as purchase order number), through shipment (serves a shipment number), receiving (serves as receiving number), invoicing (serves an ASN number), recording of the liability (serves as voucher number) and Cloud 9 and Vendor EIPP_NO 14-digit number payment (number identified on payment). PO DATE Order date MM/DD/YYҮY Cloud 9 PO SHIP_ADD Shipping address for PO excluding city, state, post (zip) code Text Cloud 9 PO_CS PO_SHIP_ADD Text Cloud 9 PO_PC Post (zip) code for PO_SHIP_ADD Text or number Cloud 9 PO_COUNTRY Country associated with PO_SHIP_ADD Text Cloud 9 14-digit number 7-digit number PO_PROD_CODE Product number Cloud 9 PO_PROD_QUANT Inventory quantity ordered by Cloud 9 Cloud 9 PO PROD PRICE Price per unit for each item ordered by Cloud 9 $X.XXX.XX Cloud 9 PO_ACCT Account charged based on ordering department 5-digit number Cloud 9 TOTAL ORD_PRICE Total price for the individual purchase order $XXX,XXX.XX Cloud 9 ASN DATE ASN date MM/DD/YYҮҮ Vendor PROD_NO Unique inventory number 14-digit number Vendor PROD_QUANT Inventory quantity ordered by Cloud 9 7-digit number Vendor PROD_PRICE Price for each item ordered by Cloud 9 $X,XXX.XX Vendor ASN_TOTAL Sum total of the vendor's advance shipping notice $XXX,XXX.XX Vendor ASN TERMS % discount allowed if paid within XX days from receiving date PP.P%/XX Vendor BILL_ADD Billing address excluding city, state, post (zip) code Text Vendor City and state (separated by a comma) associated with BILL_ADD BILL CS Text Vendor BILL_PC Post (zip) code associated with BILL_ADD Text Vendor BILL_COUNTRY Country associated with BILL_ADD Text Vendor BL DATE Bill of lading date MM/DD/YYҮY Vendor SHIP_ADD Shipping address excluding city, state, post (zip) code Text Vendor SHIP_CS City and state (separated by a comma) associated with SHIP_ADD Text Vendor SHIP_PC Post (zip) code associated with SHIP_ADD 5-digit number Vendor SHIP_COUNTRY Country associated with SHIP_ADD Text Vendor 14-digit number 7-digit number SHIP_PROD_NO Unique inventory number Vendor SHIP_QUANT Inventory quantity shipped by vendor Vendor REC DATE Date of receipt of goods MM/DD/YYYY Cloud 9 REC_ADD Shipping address excluding city, state, post (zip) code Text Cloud 9