This problem requires the use of ACL software. For this problem, start ACL, then click on “Open an existing project,” and within the project, open “Sample Project.ACL.” Click on the plus sign beside the “Tables” folder, which will reveal a series of files. We will be conducting an inventory review, so click on the plus sign beside “Inventory Review,” then click on “Inventory” to open the inventory sample data file. The suggested command or other source of information needed to solve the problem requirement is included at the end of each question,
a. Obtain and print statistical information for both Inventory Value at Cost and Market Value. Determine how many inventory items have positive, negative, and zero values for both Inventory Value at Cost and Market Values (Statistics Command). How would you use this information during the audit?
b. Use Quick Sort Ascending and Descending for both Inventory Value at Cost and Market Value (Quick Sort). Use this information and the information from part (a) to identify any concerns you have in the audit of inventory.
c. Calculate the ratio of Inventory Value at Cost to Market Value and sort the result from low to high (Computed Fields and Quick Sort). Identify concerns about inventory valuation, if any.
d. What is the potential impact of your findings upon your field work? For example, if you found zero or negative amounts for inventory values, think about how these might arise at an organization. What might negative inventory values tell you about controls over inventory or over inventory data?