Bradmark Case Study

Bradmark Comprehensive Case Fraud Audit Issues--Chapter 12 Solutions To answer these questions requires that you install ACL™ Desktop Edition (full educational version) on your computer. To do so follow the instructions on the CD that came with the textbook. The ACL Project and ACL files used in the Bradmark case are located in the Bradmark Data Folder on the website. Download these files to your computer and click on the Bradmark 04 ACL icon. ACL will automatically open the case. Based on your analysis of Bradmark’s internal controls and audit tests covered in chapters 9, 10, and 12, perform tests that could reveal the existence of fraud in the company. Design your tests around the Fraud Detection Techniques discussed in Chapter 12 of the textbook. Hand in a report describing the audit tests and your conclusions about the results of the test. To document your findings, include in your report ACL printouts showing details of test results and the command log. ANS:

 

ManagementAssertionAudit ObjectiveAudit Procedures tobe Performed UsingACL

in financials1ales >rice -ccuracy?o determined what are the unrecorded assets ,-R#

Valuation or  Allocation

Determine

 -R  *alance stated in net reali:a*le value

stablis!

 allocation for uncollecti*le accounts is appropriateCorro*orate or refute -R is stated at reasona*le 8et Reali:a*le @alue ,-ging -R#

 Accuracy

;nsure that revenue transactions are accurately computed%  *ased on correct pricesamd uantities'

nsure

-R su*sidiaryledger% sales invoice file% remittance file aremathematically correct-nd agree with A. accountsReview sales invoices for unusual trends and e0ceptionsReview 1ales <nvoice and 1hipping .og $iles $or =issing and Duplicate <temsReview .ine <tem and <nventory $iles for 1ales >rice -ccuracy?o answer parts 3 and 6 reuires that you install -C./ Desktop ;dition ,full educational version# on your computer' ?o do so follow the instruction on the CD that came with the te0t*ook'

"!e ACL Project and ACL files used in t!e Bradmark case are located in t!e Bradmark Data Folder on t!e #ebsite$

Download these files to your computer and click on the

Bradmark %& ACL

 icon' -C. will automatically open the case'3# >erform the -C. tests outlined in step ( a*ove' and in a report descri*ing the audit tests and your conclusions a*out the results of the test' ?o document your findings include in your report -C.  printouts showing details of test results and the command log'6# )sing the matri0 format *elow% identify an operational ,*usiness# concern related to the revenue  procedures' Briefly descri*e the audit o*+ective and -C. procedures to answer this concern' >erform the -C. test and prepare a report with your conclusions' Document your report with -C. printouts showing details of test results and the command log'

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