1
This study source was downloaded by 100000864005783 from CourseHero.com on 03-21-2023 05:29:05 GMT -05:00
https://www.coursehero.com/file/144918923/IS-AUDIT-SAPB1CLOUD-EXERCISE-52-TO-53-pdf/
2
Exercise 5. 2
Testing the Valuation and Allocation Assertions
1 Open the Aging Report of the customer balances
Insert the following criteria:
Code:
From: C1100
Aging Date
12.31.13
To: C2200
Insert Screenshot
This study source was downloaded by 100000864005783 from CourseHero.com on 03-21-2023 05:29:05 GMT -05:00
https://www.coursehero.com/file/144918923/IS-AUDIT-SAPB1CLOUD-EXERCISE-52-TO-53-pdf/
3
2. Compute the amount of Allowance for Doubtful Accounts. According to the industry experiences,
the collectability of accounts are as follow:
0 – 1 month = 100%
Over one month not over two months = 98%
Over two months not over three months = 95%
Over three months not over four months = 92%
Over four months = 90%
Show Computations:
Allowance for Doubtful Accounts
0-30 months
0.00
0.00
31-60 months
201,168.00 x 2%
4,023.36
61-90 months
0.00
0.00
91-120 months
882,904. 00 x 8%
70,632.32
120+ months
241,401.60 x 10%
24,140.16
Total
98,795.84
3. What would be the proposed adjusting entry?
Insert Screenshot
This study source was downloaded by 100000864005783 from CourseHero.com on 03-21-2023 05:29:05 GMT -05:00
https://www.coursehero.com/file/144918923/IS-AUDIT-SAPB1CLOUD-EXERCISE-52-TO-53-pdf/
4
Exercise 5. 3
Review of Liabilities Unusual Trends and Exceptions:
1. Generate query for A/P Invoice with the following data:
Table Field:
OPCH
DocNum, DocDate, CardCode, CardName,
Select:
DocTotal
Sort by:
DocTotal
Insert Screenshot
2. Did you encounter any irregularities on the Report? Explain Briefly
 Yes. The transaction by the vendor PC Gilmore was made on December 31, 2013 which is
considered a holiday, and the amount also is unusually large as compared with the other
amounts.
3. What actions will you take?
 The auditor should inquire about this to the management of the company and seek
additional information.
4. Is there a need for us to propose Adjusting Entries?
 No.
5. If Yes, what would be the entry? N/A
This study source was downloaded by 100000864005783 from CourseHero.com on 03-21-2023 05:29:05 GMT -05:00
https://www.coursehero.com/file/144918923/IS-AUDIT-SAPB1CLOUD-EXERCISE-52-TO-53-pdf/
Powered by TCPDF (www.tcpdf.org)