- Bradmark Comprehensive Case Chapter 10 – Expenditure Cycle
Read The Bradmark Case located in the “Bradmark Case Description” folder and answer the following questions:
1) From the case description and the associated flowcharts, assess Bradmark’s internal controls over its expenditure cycle procedures. (again, there are three issues – related to transaction authorization, segregation of duties and accounting records)
2) Using the case description, the flowchart, the file structure, and financial data below, audit objectives (that can be achieved using ACL™) are provided for each management assertion presented in the matrix below. For each audit objective, briefly describe the ACL test procedure. (and I’ve given you the last two, so you only have to list the audit procedure for the first assertion!)
3) Perform the ACL tests outlined in step 2 above. The Project and ACL files for the Bradmark case are located in the Bradmark Data Folder. Hand in a report describing the audit tests and your conclusions about the results of the test. To document your findings include in your report ACL printouts showing details of test results and the command log.
4) Using the matrix format below briefly describe the audit objective and ACL procedures to answer the given operational (business) concern related to the expenditure procedures. Perform the ACL test and prepare a report with your conclusions. Document your report with ACL printouts showing details of test results and the command log.