- Bradmark Comprehensive Case Chapter 9 – Revenue 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 revenue cycle procedures, with respect to three issues pertaining to transaction authorizations and segregation of duties.
2) Using the case description, the flowchart, the file structures, and the selected 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. As a further example, the first row in the matrix has been completed for you. (and I gave you the next two as well – so you only have to describe the audit procedure you’d use for the final management assertion!)
3) Perform the ACL tests outlined in step 2 above. **Note** (Do NOT do the tests for confirmation letters – that is given only as an example.) 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 revenue 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.