For this exercise, your client, Bright IDEAs Inc., has provided you with data for two related files, a listing of sales invoices, and a listing of customers with credit limits. To test whether credit authorization controls are in place, the auditor must complete a series of related steps.

1. Import the client's database of sales invoices (pp. 28-45 of the IDEA Workbook).

2. Summarize the Accounts Receivable balance by customer (pp. 67-79 of the IDEA Workbook).

3. Import the client's customer credit limit data into IDEA (pp. 70-79 of the IDEA Workbook).

4. Join the Accounts Receivable balances by customer with the credit limit data (pp. 80-87 of the IDEA Workbook).

5. Extract customers with exceeded credit limits (pp. 88-89).

Required Data Files:

IDEA Data Analysis Workbook

ACC_REC2015.ACCDB

CUSTOMER.TXT

Required:

Complete all of the related steps shown above using IDEA. After completing each step, answer the following questions. (Enter your answers exactly as they appear in IDEA.)

a. How many customers were granted credit with no indication that they had any credit limit assigned to them?

b. How many customers exceeded their credit limit?

c. Determine which accounts and assertions were most likely influenced by your findings in (a) and (b).

Total customers granted credit without an indication of an assigned credit limit Total customers with exceeded credit limits Accounts and Assertions Existence of accounts receivable Valuation of accounts receivable Completeness of accounts receivable Completeness of sales revenue Accuracy of sales revenue Total customers granted credit without an indication of an assigned credit limit Total customers with exceeded credit limits Accounts and Assertions Existence of accounts receivable Valuation of accounts receivable Completeness of accounts receivable Completeness of sales revenue Accuracy of sales revenue