Please help with Case 3 only

CASES Advanced Seary ples Opty MORTURED FISCAL YEAR DEPARTMENT WHE VENDOR HANE TRANSACTION DATE und Descence wa BUSINESS TAX REGISTRATION GOVERNMENT ACTIVITY # Ascencing die grond Phottie ornaroubt 6. Using "Summarize" "Advanced Summary," determine he randomly selected items for testing from the las months. the top 10 vendors in terms of payment amounts. (Hint: use the Excel "sort" function to sort the Ira was relieved when he found only six deviations fro "Advance Summary" output.) prescribed controls. One deviation was a missing we dor's invoice, so Ira called the vendor to make sure the transaction was valid.The phone conversation convincent him that the transaction was in fact valid. Three devia tions were missing signatures by an authorized manager The manager explained that he had not approved the invoices because he had been out of the office on the date the invoices were prepared. He reviewed the invoices and told Ira there were no problems with them. The other two deviations involved dollar errors, One was an error in the extension of an invoice, and the other was a msclassifi- cation error between expenses, which did not affect net income. Ira considered these two dollar errors to be the only two actual control deviations. He determined that What are the top 10 vendors in terms of number of the achieved upper deviation limit was 7 percent at a 5 individual payments made? percent risk of assessing control risk too low. 7. Using "Extract" "words and phrases," how much did the airport spend on X (your instructor will assign) Based on these results, Ira concluded that procurement in Fiscal Year 201X? transactions for the year were unlikely to contain more deviations than the allowable rate. Accordingly, he con- cluded that controls over procurement transactions were CASE 31 effective and could be relied on by management. Ira Icandoit is a staff auditor in the internal audit function of a small manufacturing company located in western Identify and explain any deficiencies you note in Ira's Kansas, Ira recently completed a professional develop attribute sampling application. ment course on statistical sampling and is very excited about the new knowledge he has gained. He decided to apply his newly gained knowledge during the audit to which he had just been assigned. He used attribute sam- The purpose of this case is to familiarize you with the pling when he performed his tests of controls over the attribute sampling functionality of the CaseWare IDEA and ACL software. Your instructor will provide you with company's procurement transactions. instructions for how to access IDEA and ACL. Once you Ira figured that a tolerable deviation rate of 10 percent have access, complete the following: and a 5 percent risk of assessing control risk too low were w were A. Open the software. Locate the description of "Attri- A. Open the software. Locate the appropriate for the tests he planned to perform. He had bute Sampling" in ACL or IDEA Help. Answer the no idea how many deviations actually might exist in the following questions. population, so he set the expected deviation rate at 2 per- cent to be conservative. Tra selected a sample of 100 items. IDEA or ACL Help? 1. How is "attribute sampling" defined in CaseWare B. Click on "Planning in Because Ira believed larger items deserved more atten- tion than smaller items, he selected 75 items with values greater than or equal to $2,500 and 25 items with values less than $2,500. He thought it would be most appropri- ate to select transactions near the end of the fiscal year, so 2. What are the two attribute sampling planning options? Briefly describe each option Click on "Planning (Beta Risk Control)" in the Step- by-Step section of the Attribute Sampling descrip- tion. Answer the following questions. 11-34 INTERNAL AUDITING ASSURANCE & ADVISORY SERVICES