The order-to-cash (020) process, or sales cycle, involves three main processes: 1. Sales order processing 2....
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
The order-to-cash (020) process, or sales cycle, involves three main processes: 1. Sales order processing 2. Order fulfillment and shipping 3. Billing and cash collections Financial accountants are interested in determining the amount of sales revenue on the income statement and accounts receivable balance on the balance sheet as well as the calculation of bad debts expense. Managers are concerned with making the process as efficient as possible to ensure increased sales volume, sufficient profitability, and fast cash collection. Auditors should test sales transaction and master data to ensure that only authorized users are processing orders, that sales prices match master data and aren't altered, and that customers aren't exceeding approval limits. In addition, auditors use accounts receivable aging schedules to evaluate outstanding balances. The O2C tables follow the UML diagram shown in Exhibit 10-1. Click here for full size Exhibit 10-1. Data: 10-102C Dats.zip-1.9MB Zip / 2.0MB Excel QS 10-1 Part 3 (Static) Instruction: Audit: Is the Delivery Process Following the Expected Procedure? (LO 10-1) As an auditor, you're interested in determining whether the delivery process follows the expected sequence. Specifically, does the delivery follow the sales order, and has each delivery been matched with an invoice? For this part, put yourself in an auditor's shoes and create an analysis that will help answer questions about the order-to-cash process. Microsoft or Tableau Using the skills you have gained throughout this text, use Microsoft Power Bl or Tableau Desktop to complete the generic tasks presented below: Build a new dashboard (In Tablesu) or page (In Power B) called Audit that includes the following: 1. Add a table to your page called Exceptions to identify any shipments that occurred before the order was placed. It should show the Sales Order ID and the number of days to ship in ascending order a. Create a new measure called Order To Ship Days that calculates the difference between the sales order date and the shipment date. Power BI Hint: Use the DATEDIFF() function to calculate the difference and the MIN() function on the date fields to load specific dates b. Filter this visual on order to ship days to show only negative values. 2. Add a new matrix table called Missing Invoice to determine whether any orders have shipped but have not yet been invoiced. It should list the sales orders, earliest (minimum) shipment date, minimum shipment ID, and minimum invoice ID. Filter this visual on Invoice ID to show only missing (blank) values. 3. You should find at least one exception here. If you don't see any exceptions, try selecting different months in the sales order date month fiter 4 Take a screenshot of your dashboard showing exceptions and missing Invoices (label it 10-1C). 5. Save your workbook, answer the lab questions, then continue to Part 4. The order-to-cash (020) process, or sales cycle, involves three main processes: 1. Sales order processing 2. Order fulfillment and shipping 3. Billing and cash collections Financial accountants are interested in determining the amount of sales revenue on the income statement and accounts receivable balance on the balance sheet as well as the calculation of bad debts expense. Managers are concerned with making the process as efficient as possible to ensure increased sales volume, sufficient profitability, and fast cash collection. Auditors should test sales transaction and master data to ensure that only authorized users are processing orders, that sales prices match master data and aren't altered, and that customers aren't exceeding approval limits. In addition, auditors use accounts receivable aging schedules to evaluate outstanding balances. The O2C tables follow the UML diagram shown in Exhibit 10-1. Click here for full size Exhibit 10-1. Data: 10-102C Dats.zip-1.9MB Zip / 2.0MB Excel QS 10-1 Part 3 (Static) Instruction: Audit: Is the Delivery Process Following the Expected Procedure? (LO 10-1) As an auditor, you're interested in determining whether the delivery process follows the expected sequence. Specifically, does the delivery follow the sales order, and has each delivery been matched with an invoice? For this part, put yourself in an auditor's shoes and create an analysis that will help answer questions about the order-to-cash process. Microsoft or Tableau Using the skills you have gained throughout this text, use Microsoft Power Bl or Tableau Desktop to complete the generic tasks presented below: Build a new dashboard (In Tablesu) or page (In Power B) called Audit that includes the following: 1. Add a table to your page called Exceptions to identify any shipments that occurred before the order was placed. It should show the Sales Order ID and the number of days to ship in ascending order a. Create a new measure called Order To Ship Days that calculates the difference between the sales order date and the shipment date. Power BI Hint: Use the DATEDIFF() function to calculate the difference and the MIN() function on the date fields to load specific dates b. Filter this visual on order to ship days to show only negative values. 2. Add a new matrix table called Missing Invoice to determine whether any orders have shipped but have not yet been invoiced. It should list the sales orders, earliest (minimum) shipment date, minimum shipment ID, and minimum invoice ID. Filter this visual on Invoice ID to show only missing (blank) values. 3. You should find at least one exception here. If you don't see any exceptions, try selecting different months in the sales order date month fiter 4 Take a screenshot of your dashboard showing exceptions and missing Invoices (label it 10-1C). 5. Save your workbook, answer the lab questions, then continue to Part 4.
Expert Answer:
Related Book For
Auditing Assurance Services and Ethics in Australia an Integrated Approach
ISBN: 978-1442539365
9th edition
Authors: Alvin A Arens, Peter J. Best, Greg Shailer, Brenton Fiedler
Posted Date:
Students also viewed these accounting questions
-
Statistical methods in Logistics Management A. Thoroughly discuss some of the various tasks in logistics management and the benefits of applying statistics to each of the tasks. references:...
-
The Crazy Eddie fraud may appear smaller and gentler than the massive billion-dollar frauds exposed in recent times, such as Bernie Madoffs Ponzi scheme, frauds in the subprime mortgage market, the...
-
Planning is one of the most important management functions in any business. A front office managers first step in planning should involve determine the departments goals. Planning also includes...
-
What are the side effects of the drugs that are used for treatment of Multiple Sclerosis attacks? Are cataracts a result of steroid use? Is osteoporosis a complication of Multiple Sclerosis?
-
Explore the social media links on the kiwiexperience.com home page. a. What are you initial reactions? Does the layout and concept invite you to participate and provide your own content? b. This Web...
-
The sex ratio of newborn human infants is about 105 males: 100 females. If four infants are chosen at random, what is the probability that (a) Two are male and two are female? (b) All four are male?...
-
A company is in trouble as a result of low profits and excessive debts. (a) Do you think that the creditors and the shareholders have the same concerns? More specifically, in the event of the...
-
Overnight Laundry is considering the purchase of a new pressing machine that would cost $100,000 and would produce incremental cash flows of $25,000 annually for 6 years. The machine has a terminal...
-
18. When the taxpayer uses amounts received from the insurance company to restore damaged property to its original condition, the expenditures _______________ the taxpayer's adjusted basis in the...
-
(Related to Checkpoint 5.6) (Solving for i) You are considering investing in a security that will pay you $2,000 in 31 years. a. If the appropriate discount rate is 12 percent, what is the present...
-
What effects may the acceptable level of detection risk have on substantive tests for reconciling bank accounts?
-
What are the audit objectives for fixed asset transactions and balances?
-
What are the three main audit objectives for cash, and why?
-
State the tests that relate to both the existence and valuation assertions stocks.
-
For the auditors observation at a stock-taking, what steps should be performed? Why should the auditor take test counts?
-
please put the informatiom into a general journal. thank you so much The Clothing Cove has two classes of stock authorized: 7%, $10 par preferred, and $1 par value common. The following transactions...
-
Floyd Distributors, Inc., provides a variety of auto parts to small local garages. Floyd purchases parts from manufacturers according to the EOQ model and then ships the parts from a regional...
-
What is the amount of the credit to health insurance premiums payable?
-
For each of the definitions, write the letter of the appropriate term in the space provided. 1-Abusiness that is owned by one individual. 2-Abusiness that is owned by two or more individuals....
-
What is the amount of monthly contribution required to accumulate a savings of $175,000.00 based on the information provided in this problem.''-
Study smarter with the SolutionInn App