Substantive testing of accounts receivable through
confirmations is an established and required audit procedure. However, the
technology used to perform portions of this work is evolving. This case will
expose you to the testing of accounts receivable while introducing them to
audit-related technologies (such as Interactive Data Extraction and Analysis
(IDEA) software and robotic process automation (RPA)) used in practice. In this
case, you will 1) evaluate a client-provided data file, 2) select a sample of
customer invoices using IDEA, 3) obtain audit evidence from their firm’s RPA
software and evaluate the evidence for the identification of exceptions, 4)
project any misstatements from the sample to the population, and 5) document
their conclusions. This case will help you develop a greater awareness of
technologies used in audit practice. The case also allows you to practice
skepticism, apply professional judgment, and hone your business writing skills
by documenting your results in a professional memo.
1.Completely read the Student Case PDF
2. Download and save PBC1
3. Complete the items and questions in Appendix A for Steps
1 & 2
4.Complete Step 3 by reviewing and evaluating PBC 2 Download
PBC 2and PBC 3 Download PBC 3and read the assigned readings to respond to 3d.
Moffitt et al. (2018 JETA) Download Moffitt et al. (2018
JETA)
Rozario & Vasarhelyi (2018)Download Rozario &
Vasarhelyi (2018)
5.Complete Step 4 by evaluating your results using IDEA
(item 4a in Appendix A)(you can leave this part) and writing a professional memo to address the request
of your audit manager (item 4b in Appendix A).
