BKAA3023 AUDITING AND ASSURANCE II (A181)

INDIVIDUAL ASSIGNMENT (12 MARKS)

MS EXCEL and ACL in Practice DUE DATE: 29 November 2017

You have been appointed as auditor for ARIS GROUP BHD and about the start the audit field work.

ARIS GROUP is one of the world’s leading manufacturers of automobiles and commercial vehicles
and the largest carmaker in Asia.

PART A (MS EXCEL)

Access the financial statements of ARIS GROUP (File-ARIS GROUP FINANCIAL STATEMENTS.xls),

Based on the provided unaudited financial statements perform preliminary analytical procedures
(horizontal, vertical and ratio analyses) for company and provide your opinion regarding the audit.

1. Elaborate inherent risks of companies operating in automotive industries.

2. Analyse the financial statements using the horizontal, vertical and ratio analyses.
3. Identify additional information that you might need to make your analysis more informative.
4. Evaluate the results of analytical procedures performed and suggest account (s) that might
expose to higher risk of material misstatement. Why?

PART B (ACL PRACTICAL)

Please use the following link and log-in criteria for an immediate download of the Audit Command
Language (ACL) software:
http://www.mhhe.com/business/accounting/acl9_download
Username: ACLdata
Password: Analytics%9

This download is strictly for instructors and students use.

TRY OUT THE ACL SOFTWARE AND ANSWER THE FOLLOWING QUESTIONS:

1. Explore the software and the tasks that can be performed by ACL.
2. Create a new project (Hint: File – New Project) and name it as ARIS GROUP BERHAD. Retrieved
the provided excel file ‘LIST OF ACC PAYABLE_ARIS BHD’ and save as ‘AP_ARIS.fil’. (Warning:
You will be directed through several steps for conversion).
3. Study on how to use ACL to search for duplicate invoices and perform the task for ARIS GROUP
BHD using the file ‘AP_ARIS.fil’.
i. Screenshot the ACL’s results of duplicates invoices in your report. (2 Mark)
ii. Explain why duplicate invoices is of concern to auditor. (4 Marks)
iii. If duplicate invoices are found, what possibly should auditor do next? (4 Marks)
 4. Using ‘AP_ARIS.fil’, calculate the sample size for the audit test. Choose ‘Monetary’ option.
Fill in the fields –
Confidence = 95
Population = 150000
Materiality= 10000
Expected Total Errors = 5000

i. Find out the sample size and screenshot the output (see below) in the report (2
Mark)

Redo the process, but now sets the ‘Confidence’ at 99 and screenshot the new result’s
output in the report.
ii. Based on your output findings, explain the relationship between ‘Confidence’ and
sample size to be selected. Why different ‘Confidence’ level will result in different
sample size. (4 Marks)

INSTRUCTIONS

Prepare the answer for PART A 1,3,4 using MS Word or PDF. The answer for 2 should be prepared
using MS Excel by using correct formulae.

The answer for PART B should be in the formats of MS Word or PDF.

Submission is through Online Learning’s portal or hard copy. This will be decided by respective
instructor.

Note: Assessment for PART A will be based on Critical Thinking and Problem Solving (CTPS) Rubric.

END OF QUESTIONS