Fraud Risk in Revenue Recognition Essay
Order ID:89JHGSJE83839 Style:APA/MLA/Harvard/Chicago Pages:5-10 Instructions:
Fraud Risk in Revenue Recognition Essay
Running head: TITLE GOES HERE 1
TITLE OF THE PAPER GOES HERE 6
Title of the Paper Goes Here
Student Name
Keiser University
Instructor
Course
Date
Introduction Leave in the headings and fraud risk table below and type your ideas under each of the headings provided. Be sure to follow proper APA format for citations and sources. Also, remove any notes in this template.
Abstract :
The Abstract is an overview of the paper, written after completion. Other researchers use the Abstract to determine if your work will be useful to them. The Abstract should include the background, hypothesis or research question, methodology for data collection and analysis, the findings of your research, and conclusions (about 100-150 words).
Be sure to page break since the abstract goes on its own page
Introduction:
The Introduction should lead readers into the topic and its importance. Introductions typically include the overall topic of the paper, the specific focus of the paper within the larger topic, the main points in the paper, the kind of paper (study, argument, critique, discussion), and the purpose.
Writing Tip:
The length of the introduction should be in proportion to the length of the paper. Also ask yourself, “With my purpose and my audience, how do I engage my readers best?” In the introduction, you set the tone of the piece, establish your voice, and demonstrate your writing style; be authentic to your purpose and your audience.
(from the University of Wollongong, NSW, Australia): http://unilearning.uow.edu.au/report/4biii1.html
Written for Keiser University GROWS by Amy C. Flagg
Requirement 1-Fraud Risk
Using professional auditing standards briefly discuss the auditor’s responsibility to identify fraud risk in revenue recognition related to this case.
Be sure to answer parts a-c and clearly label each section as shown. For part a. complete the summary chart below with 3 fraud risks you have identified at this company. List the risk, the accounts that would be affected by this fraud, identify the related audit assertions, and what fraud may happen based on the risk you have identified. Then in your discussion identify a possible solution to each risk you have identified.
a.
Fraud Risk Factor Accounts Affected Audit Assertions (AU Section 326)
Possible issue based on the risk factor identified 1. 2. 3. b.
c.
Requirement 2-Test of Controls
Be sure to answer parts a-b and label each part clearly as shown below
a.
IDEA INSTRUCTIONS: Be sure to remove these instructions, they are not part of your paper.
1) Import in all of the Excel files given to you in this case (you will need them all later)-be sure to check off all sheets, the first row is the headings, and blank cells fill in 0s. To make it easier, as each file is loaded in, close it before you load in the next file.
2) Make sure all files are closed, open the sales order file into the IDEA screen
3) Due to the way this company operates you will want to join 3 files to answer this part of the question, however you can only join 2 files at a time
4) Since the sales order file is open, click on analysis/ join. The primary file is the sale order file and the secondary file is the customer invoice file, match using the sales order ID for both files, name this file Sales and Customers, select all records in both files to join
5) Keeping only the Sales and Customer file open, join in the shipments file as the secondary file, again match on sales order ID for both files, name this file All Three, select all records in both files to join
6) Only keep the All Three file open and close all other files. Click on analysis/direct (this is a direct extract). Name this file Sales 2017 and in the equations box (click on the little calculator) you want the invoices that are dated between Jan 1 and Dec 31, 2017. So the formula needs to say greater than equal to Jan 1 AND less than equal to Dec 31 using the proper IDEA format when writing formulas.
7) Click on field statistics to verify the net value.
*Copy and paste the report from field statistics here along with your answer
b.
IDEA INSTRUCTIONS: Be sure to remove these instructions, they are not part of your paper.
1) Make sure all files are closed and only open the Sales 2017 file from part a.
2) Again use direct (direct extraction) and call the file AR 2017. The equation for this part is to look for a paid date greater than Dec 31 2017. Use the appropriate IDEA formula
3) Run field statistics to verify the total due.
*Copy and paste the report from field statistics here along with your answer
*Copy and paste the history file for this requirement
Requirement 3-Areas of Risk
TABLEAU INSTRUCTIONS: Be sure to remove these instructions, they are not part of your paper.
1) For the required 3 way match Import only the Sales Order file into the Data Source tab (if you try and load in too many files at time it may not work depending on your computer).
2)Go to Sheet 1 tab and select SalesOrder ID, Invoice ID, and Ship ID then Total Due–use the image of the packed bubbles for this chart.
3) Go back to the Data Source tab and add in any other files as needed.
*Present any other 2 charts from the list in the case and place a copy of each here (total of 3 charts).
Be sure to answer a-b and label each part clearly as shown below
a.
Using proper memo format answer part a. based on a summary analysis of all of the 3 charts you created. The memo should be about 1/2 to a 1 page
b.
Answer this part, again in summary, based on the 3 charts you created and what you found in part a.
Requirement 4-Areas of Risk
Be sure to answer a-d and label each part clearly as shown below
a.
IDEA INSTRUCTIONS a-d: Be sure to remove these instructions, they are not part of your paper.
1) Open sales 2017 from requirement 2. You want to create a file called three-way match using direct extraction. In the calculation box look for sales order ID =0 or ship ID=0 or ship date before invoice data using the appropriate IDEA formula.
*Copy and paste the exception report from this section here along with your answer
b.
IDEA INSTRUCTIONS: Be sure to remove these instructions, they are not part of your paper.
1) Make sure all other files are closed. Open sales 2017 join this file with the customer master file and matching on the customer ID. Call the file sales wo credit limits and select records with no secondary match
*Copy and paste the exception report from this section here along with your answer
c.
IDEA INSTRUCTIONS: Be sure to remove these instructions, they are not part of your paper.
1) Make sure all other files are closed. Open AR 2017 file from requirement 2. Click analysis/summarization. Call this file ar by cust id. Summarize by customer ID and the numeric field to total is total due.
2)Be sure only the ar by cust id file is open and join this file with customer master file. Call this new file cr limit except 2017. Match based on customer ID but narrow down the report to only territory ID, customer name, credit limit and modification date by selecting fields and only highlighting these titles (you may have to clear first then highlight the ones you want). Select all records in primary.
3) Only leave open the credit limit except 2017 file and extract cases where the total due sum is greater than the credit limit. Call this file AR credit limit except 2017
*Copy and paste the exception report from this section here along with your answer
c.
IDEA INSTRUCTIONS: Be sure to remove these instructions, they are not part of your paper.
1) Make sure all other files are closed. Open the AR 2017 file from requirement 2. Click analysis/summarization. Call this file ar by cust id. Summarize by customer ID and the numeric field to total is total due.
*Copy and paste the exception report from this section here along with your answer
d.
IDEA INSTRUCTIONS: Be sure to remove these instructions, they are not part of your paper.
1) Make sure all other files are closed. Open the AR 2017 file. Click on analysis/aging. This aging is as of Dec 31 2017 (again watch the format for dates in IDEA). The aging field is invoice date and field to total is total due. Select only 30, 60, 90 days. Call this file aging sched.
*Copy and paste the aging report AND copy and paste the detail on the 5 items over 90 days from this section. Include both reports here along with your answer
*Copy and paste the history file for this requirement
Requirement 5-Risk Analysis
For this section you can use any 3 tests in IDEA you think are appropriate in this case. Be sure to discuss why you selected the test and what it showed
Data Patterns Observed Additional Analysis Needed IDEA Tests to Perform Specific Findings 1. 2. 3. *Copy and paste each of the 3 reports here along with your findings in the chart above
*Copy and paste the history file for this requirement
Requirement 6-Conclusion
Summarize the level risk of material misstatement in this case and justify your answer. In other words, if you feel there is a very low risk why or if you feel there is a very high risk, why based on your tests of the data provided?
Overall, do you see any ethical issues with management’s strategies and/or philosophies in this case?
References:
Remember to list all sources used in your paper in alphabetical order and they must match your in-text citations within the document. Please review APA format in your APA manual and/or the Writing Studio. Be sure to page break prior to your reference section since the references go on their own page.