ISBN-10:
0131638033
ISBN-13:
9780131638037
Pub. Date:
08/02/2004
Publisher:
Prentice Hall
Comprehensive Assurance and Systems Tool: An Integrated Practice Set / Edition 1

Comprehensive Assurance and Systems Tool: An Integrated Practice Set / Edition 1

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Product Details

ISBN-13: 9780131638037
Publisher: Prentice Hall
Publication date: 08/02/2004
Edition description: Older Edition
Product dimensions: 8.24(w) x 9.74(h) x 0.66(d)

Read an Excerpt

The Comprehensive Assurance and Systems Tool (CAST) provides an integrated learning opportunity that encompasses financial statement assurance and accounting information systems. CAST uniquely exposes students to these issues at The Winery at Chateau Americana, a hypothetical company that is based on an actual domestic winery. Unlike traditional projects and assignments that may offer little or no context, students develop a rich knowledge and understanding of Chateau Americana and its industry as they provide assurance on the company's financial statements and address a variety of challenging accounting information systems issues.

CAST is comprised of three self-contained, but complementary modules:

  • The Manual AIS module requires students to complete real-world business documents, journalize and post a variety of transactions, and prepare a yearend worksheet. This module may be completed before or during the completion of either the Accounting Information Systems module or the Assurance module. However, students are not required to complete this module before the other modules.
  • The Accounting Information Systems module is comprised of three components: spreadsheets, general ledger software, and databases. Although self-contained, this module's value is greatest when combined with the Manual AIS module.
  • The Assurance module provides students hands-on experience with fundamental elements of financial statement assurance. This module is comprised of components related to the client acceptance decision, understanding the business environment, understanding and testing internal controls, assessing risks and materiality, conducting substantive tests, evaluating attorney's letters, performing analytical review procedures, and determining the appropriate audit opinion. These components build upon one another and should be completed in the order in which they are presented.

CAST can be implemented in either an undergraduate or graduate setting and is ideally suited for simultaneous integration across assurance and information systems courses. In addition, each of the modules can be completed either as an in-class or an out-of-class assignment. CAST affords students the opportunity to develop and strengthen their analytical thinking, written and oral communication, problem solving, and team building skills.

Table of Contents

Computerized AIS module

1. Prepare Various Common Documents Relating to Sales, Cash Receipts, Purchases, Cash Disbursements and Payroll.

2. Prepare Journal Entries.

3. Prepare Specialized Journal Entries.

4. Post Entries to Subsidiary Ledgers and General Ledgers.

5. Prepare Month-End and Year-End Reconciliation Documents, Trial Balances, etc.

6. Prepare Year-End Worksheet.

Auditing module

Excel Assignment

1. Introduction. 2. Creation of Financial Statements. 3. Reporting. 4. Journals. 5. Financial Statement Analysis. 6. Pivot Tables.

Peachtree Assignment

1. Set Up. 2. Transaction Entry. 3. Month-end/Year-end Procedures. 4. Financial Reports.

Access Assignment

1. Introduction to Database Concepts. 2. Creating a Database. 3. Creating Tables. 4. Creating Forms. 5. Creating Relationships. 6. Creating Reports.CAST: Integrated Auditing and AIS Simulation

Understanding the Business Environment and Related Risks

1. Company Information. 2. Industry Information.

Client Acceptance and Initial Audit Planning.

1. Company Background. 2. Industry Background. 3. Financial Statements and Basic Facts about the Company.

Obtain an Understanding of Control Activities and Tests of Controls for the Expenditure Cycle

1. Objectives of the Assignment. 2. Brief Background Information about the Company and Industry. 3. Brief Background Information about the Expenditure Cycle. 4. Assignment Requirements. 5. Audit Planning Program. 6. Flowcharts of Purchasing Activities. 7. Flowcharts of Cash Disbursement Activities. 8. Audit Schedule(s) for Control Activities. 9. Audit Schedule for Tests of Controls.10. Audit Schedule for Reportable Conditions.

Design of Substantive Tests of Transactions for the Expenditure Cycle

1. Objectives of the Assignment. 2. Brief Background Information about the Company and Industry. 3. Brief Background Information about the Expenditure Cycle. 4. Assignment Requirements. 5. Audit Planning Program. 6. Flowchart(s) of Purchasing Activities. 7. Flowchart(s) of Cash Disbursement Activities. 8. Audit Schedule(s) for Substantive Tests of Transactions.

Design Analytical Tests and Substantive Tests of Balances for the Expenditure Cycle

1. Objectives of the Assignment. 2. Brief Background Information about the Company and Industry. 3. Brief Background Information about the Expenditure Cycle. 4. Brief Background Information on How Accounts Payable Records are Maintained. 5. Assignment Requirements. 6. Audit Planning Program. 7. Audit Schedule(s) for Analytical Tests and Substantive Tests of Balances.

Develop an Overall Audit Strategy for the Expenditure Cycle

1. Objectives of the Assignment. 2. Brief Background Information about the Company and Industry. 3. Brief Background Information about the Expenditure Cycle. 4. Brief Background Information on Fraud and Control Environment Assessment. 5. Assignment Requirements. 6. Audit Planning Program. 7. Flowchart(s) of Purchasing Activities. 8. Flowchart(s) of Cash Disbursement Activities. 9. Audit Schedule(s) for Tests of Controls, Tests of Transactions, Analytical Tests, and Substantive Tests of Balances.10. Audit Schedule for Inherent Risk, Control Risk, and Detection Risk Assessment.11. Audit Schedule for Reportable Conditions and Material Weaknesses.

Performance of Tests of Controls and Transactions for the Revenue Cycle

1. Objectives of the Assignment. 2. Brief Background Information about the Company and Industry. 3. Brief Background Information about the Revenue Cycle. 4. Assignment Requirements. 5. Audit Performance Program. 6. Flowcharts of Sales Activities. 7. Flowcharts of Cash Receipt Activities. 8. Audit Program. 9. Audit Lead Schedule.10. Supporting Schedules for Audit Tests.11. Audit Schedule for Proposed Audit Adjustments.12. Sales Journal.13. Cash Receipts Journal.14. Selected Sales Documents.15. Selected Cash Receipt Documents.

Performance of Tests of Balances for the Revenue Cycles

1. Objectives of the Assignment. 2. Brief Background Information about the Company and Industry. 3. Brief Background Information about the Revenue Cycle. 4. Brief Background Information about How Accounts Receivable are Maintained. 5. Assignment Requirements. 6. Audit Performance Program. 7. Audit Program. 8. Audit Lead Schedule. 9. Supporting Schedules for Audit Tests.10. Audit Schedule for Proposed Audit Adjustments.11. Aged Accounts Receivable Trial Balance.12. Selected Accounts Receivable Confirmations.13. Sales Journal.14. Selected Sales Documents.15. Selected Cash Receipt Documents.

Completing the Audit

1. Final Analytical Procedures and Review of Supplemental Disclosures. 2. Potential Litigation. 3. Summary of Adjustments and Significant Audit Issues. 4. Mock Interview with Client Regarding Proposed Adjustments. 5. Issuance of Appropriate Audit Report.

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