You are auditing Accounts Receivable of HUSKY Corp. as of December 31, 2013. The Accounts Receivable...

You are auditing Accounts Receivable of HUSKY Corp. as of December 31, 2013. The Accounts Receivable general ledger balance is $4,263,919.52.

Access the textbook's resources on the Cengage website. The files are labeled "HUSKY Unpaid Invoices 2013" (the 12/31/2013, unpaid invoices), "HUSKY Shipping File 2013" (contains the shipment numbers and shipment dates for those invoices), and "HUSKY Credit Limit 2013" (contains each customer's credit limit). Sales are made FOB shipping point. The auditor has verified that the last shipment in 2013 is numbered 62050 and that shipping numbers have been used in proper sequence.

1. Foot the file of unpaid invoices using the menu option Analyze, then Statistical, then Statistics and agree to the general ledger. Print the statistics for the audit documentation and note the other statistics provided.

2. Identify customers with balances over their credit limit and print out the results. (Hint: Before combining files, be sure the matching fields, such as CUSTNUM or INVNUM, have been changed in each table from a number format to ASCII format using the menu item Edit then Table Layout. Double click on the field you want to change).

3. Perform a sales cutoff test to identify any invoices for which sales were recorded in 2013 but shipment was not made until 2014 and print out the results, including the total of those invoices.

4. Age the unpaid invoices as of December 31, 2013, print the aging and graph of the aging, extract (by double-clicking on the over 45 days aging indicator) and print out a list of invoices over 45 days old that also shows the total of those invoices.

5. Summarize your results and describe what procedures should be performed based on those results. Use ACL to stratify the population of customer balances, print the results, and describe how this information could be used to help determine which balances to confirm.

Expert Solution

Refer to the below images for the above mentioned requirements in a detailed way of solution with explanation.

ekkarill92 answered 1 year ago

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