NIM : 2301854196

NAME : Rudy Setiawan Kamadjaja

COURSE CODE : ACCT6079020
COURSE NAME : Method and Practice of Computerized Audit
CLASS : LC53
LECTURER CODE : D4757
NAME OF LECTURER : Ignatius Edward Riantono
DAY, EXAM DATE : Friday, 11 February 2022
TIME : 13:00:00

Please note the following instructions:

a) Your answer should be reported in MS Word and saved in PDF file.
b) Prepare your analysis results in a form of table and its logs to MS Word.
c) Save your MS Word file with the following format: NIM_FULLNAME_CLASS

Case (100%)
Roger Company is a mid-sized distributor of home and garden products based in the Midwest.
You’ve been assigned to audit Roger Company’s financial accounts and are a member of the
engagement team. Roger Company has been a client of your firm for a long time, and your firm has
had very few issues with them. On the other hand, the engagement partner has made it clear that
no mistakes would be tolerated. Your responsibilities as one of the engagement’s auditors are
detailed below.

Your audit engagements cover Account Payable and Cash Disbursement transaction using the
following tables:
1) Roger Company Vendors
2) Roger Company AP Transactions
3) Roger Company Cash Disbursements

Company Policies
As a quality control procedure, management at Roger Company reviews each approved vendor at
least once a year. In the reviews, management compares pricing across vendors, retests products
purchased from vendors to ensure they meet quality control standards and performs testing to
ensure purchasing personnel is not inappropriately favoring a vendor or potentially colluding with
vendors. All purchasing should be made from authorized vendors.
Roger Company has the policy to make routine cash disbursements bi-monthly and save the cash
disbursements information in a database available to you as the Roger Company Cash Disbursement
table. Data for non-routine cash disbursements are kept in a different database. Roger Company
considers cash disbursements under $1.500 as routine, and anything else should be in the other
database. The routine payments should be made frequently enough so that a vendor’s accounts
payable balance never exceeds $500. The cash Disbursements table is organized to display the
running accounts payable balance over time.
From experience on past audits, you know that Happy Homes Law Offices handles all of Roger
Company’s legal issues and that Roger Company records legal payments as “Legal Services.”
However, you want to make sure no other legal fees have been paid to other law offices.
Using ACL, find and analyses the following:
1) Which vendors have not been reviewed since January 2004? (10 points)
ANSWER!
As of: 02/11/2022 05:16:58

Command: SUMMARIZE ON Last_Review IF Last_Review < `20040101` TO SCREEN PRESORT

Table: Roger_Company_Vendors

If Condition: Last_Review < `20040101` (2 records matched)

Last_Review Count
11/30/2000 1
12/18/2002 1
Totals 2

2 records produced

INTERPRETATION:
There are two vendors, which are Old Fashioned Hardware and Homemade Hardware have not been
reviewed since January 2004. These two vendors become attention because they didn’t include in
yearly reviewed as they should. This maybe happened by accident, the list was passed by or on
purpose, that indication fraud.
2) Were there purchasing transactions made from unauthorized vendors? (15 points)
ANSWER!
As of: 02/11/2022 03:20:02

Command: CLASSIFY ON Payee SUBTOTAL Vendor_Number TO SCREEN

Table: Roger_Company_Cash_Disbursement

Vendor_Number = 0 AND Roger_Company_AP_Transactions.Vendor_Number = 0 AND

Filter:
Roger_Company_Vendors.Vendor_No_ = 0 (10 records matched)

Payee Count Percent of Count Percent of Field Vendor_Number

Atlantic States Steel 1 10% 9,999% 0
BigZoo Technology 1 10% 9,999% 0
Hartford Brothers 6 60% 9,999% 0
Melissa and Daughters Inc. 1 10% 9,999% 0
Taggart and Associates 1 10% 9,999% 0
Totals 10 100% 9,999% 0

3) How many were purchases/cash disbursements made from unauthorized vendors or invalid
vendor numbers? (15 points)
ANSWER!
As of: 02/11/2022 03:35:07

Command: CLASSIFY ON Payee SUBTOTAL Amount_Paid TO SCREEN

Table: Roger_Company_Cash_Disbursement

Vendor_Number = 0 AND Roger_Company_AP_Transactions.Vendor_Number = 0 AND

Filter:
Roger_Company_Vendors.Vendor_No_ = 0 (10 records matched)

Payee Count Percent of Count Percent of Field Amount_Paid

Atlantic States Steel 1 10% 2.61% 1,339.99
BigZoo Technology 1 10% 0.34% 175.29
Hartford Brothers 6 60% 95.02% 48,868.99
Melissa and Daughters Inc. 1 10% 0.04% 18.68
Taggart and Associates 1 10% 2% 1,029.24
Totals 10 100% 100% 51,432.19

INTERPRETATION:
There were 10 transactions made by invalid vendor, invalid vendor because the vendor didn’t have
vendor number. Those transactions must be invalid transactions or maybe fictitious transactions, or
another possibility is error by system. Roger company should pay attention to their cash
disbursement because

4) How many cash disbursements are under $1,500? (10 points)

ANSWER!
As of: 02/11/2022 01:29:39

Command: CLASSIFY ON Payee SUBTOTAL Amount_Paid IF Amount_Paid < 1500 TO

SCREEN
Table: Roger_Company_Cash_Disbursement

If Condition: Amount_Paid < 1500 (714 records matched)

Percent of Percent of
Payee Count Amount_Paid
Count Field
American Trading Company 15 2.1% 2.15% 10,954.06
Atlantic States Steel 16 2.24% 2.11% 10,795.30
Automobiles International 16 2.24% 2.24% 11,454.78
Bell Group 16 2.24% 1.53% 7,808.24
BigZoo Technology 16 2.24% 2.11% 10,790.01
Black and Blue Steel 15 2.1% 1.95% 9,953.76
Blossom Country Construction 16 2.24% 2.26% 11,518.45
Ceilings and Tile LLP 15 2.1% 2.03% 10,340.14
Celestial Exchange 15 2.1% 2.45% 12,486.84
Equipment of the Industries 14 1.96% 2.12% 10,814.15
Ferris Wheel Company 14 1.96% 1.77% 9,058.34
Gathering Services 17 2.38% 1.93% 9,863.65
Genao Imports 12 1.68% 1.7% 8,669.94
HHUO Supplies Store 15 2.1% 2.36% 12,034.31
Happy Homes Law Offices 14 1.96% 2.22% 11,329.00
Hartford Brothers 2 0.28% 0.24% 1,250.73
Hayward and Kjelstrom LLP 1 0.14% 0.24% 1,232.82
Helamen Crates 16 2.24% 2.76% 14,072.81
Hilton Group 16 2.24% 1.48% 7,579.98
Homemade Hardware 15 2.1% 1.89% 9,675.74
Inhale Company 10 1.4% 1.57% 8,040.26
Integrated Equipment 15 2.1% 2.01% 10,261.57
International Exchange Inc. 15 2.1% 2.19% 11,177.69
Iron Rod Manufacturing 16 2.24% 1.99% 10,144.13
Jimmy's Jungle 15 2.1% 2.24% 11,416.78
Koro International 14 1.96% 2.29% 11,694.23
MIF Manufacturing 12 1.68% 1.73% 8,842.29
Magnetic Company 16 2.24% 2.19% 11,206.02
Marathon Company 15 2.1% 1.82% 9,272.68
Marlboro Manufacturing 15 2.1% 1.99% 10,172.96
McKinsey and Sons 16 2.24% 2.65% 13,518.08
Melissa and Daughters Inc. 18 2.52% 2.9% 14,795.25
Michael Distribution 15 2.1% 2.23% 11,373.27
Mike and Marsh's Factory 14 1.96% 1.59% 8,109.73
Mississippi Equipment 16 2.24% 2.73% 13,942.10
Nutritious Products 15 2.1% 2.73% 13,922.54
Old Fashioned Hardware 16 2.24% 2.04% 10,396.27
Perris Wheel Company 12 1.68% 1.16% 5,922.50
Ross Company 15 2.1% 2.24% 11,448.43
Smooth Industries 15 2.1% 1.79% 9,141.19
Sorensen and Young 11 1.54% 1.35% 6,899.94
Sunflower Lane 14 1.96% 2.27% 11,601.69
Taggart and Associates 16 2.24% 2.23% 11,396.82
Technology of the United
15 2.1% 2.33% 11,896.50
States
The Mark Stevens Group 16 2.24% 2.77% 14,151.46
Tool Time Equipment 12 1.68% 1.26% 6,429.31
Universal Entertainment 17 2.38% 2.61% 13,340.48
Utility Water and Power 11 1.54% 1.84% 9,405.92
Woolard Incorporated 15 2.1% 1.47% 7,515.11
Wrist and Ankle Sales 16 2.24% 2.25% 11,483.91
Totals 714 100% 100% 510,602.16
INTERPRETATION:
There are 714 transactions from 837 total records that have cash disbursement under $1,500. There
are 6 transactions came from 0 or no vendor numbers, which mean there are fictitious
cashdisbursement that done by invalid vendor. This should be continued for management
explanation.

5) Were there any balances (in the Cash Disbursement table) higher than $500? (10 points)
ANSWER!
As of: 02/11/2022 04:50:21

Command: CLASSIFY ON Payee SUBTOTAL Balance IF Balance > 500 TO SCREEN

Table: Roger_Company_Cash_Disbursement

If Condition: Balance > 500 (0 records matched)

Payee Count Percent of Count Percent of Field Balance

Totals 0 0% 9,999% 0.00
INTERPRETATION:
There is no balance in cash disbursement are higher than $500. This is evidence that their system
worked well, and frequently routine payment well done. Client success to maintain their account
payable balance below the required maximum of its balance. Payment by cash Disbursement running
well and without any problem.

6) Search for payments to other lawyers:

a. Were payments for legal services made to law offices other than Happy Homes? (10 points)
ANSWER!
As of: 02/11/2022 05:29:03

Command: COUNT IF Description = "Legal Service" AND Payee <>

"Happy Homes Law Office"
Table: Roger_Company_Cash_Disbursement

If Description = "Legal Service" AND Payee <> "Happy Homes Law Office" (1
Condition: records matched)

1 records counted
INTERPRETATION:
There was payment for legal service made to law office besides Happy Homes, it was Hayward and
Kjelstrom LLP. Amount of transaction is $1232.82 and used on 30 September 2004. Payment made
just once for them, Roger Company used Hayward and LPP service for legalService only one time.

b. List any other law offices that received payments. (10 points)
ANSWER!
INTERPRETATION:
Roger Company used Hayward and Kjelstrom LLP Law Office once and Happy Homes Law Office 14
times. We should ask Roger’s management why they used another law service besides Happy
Homes for just one time, possibility of fraud and something suspicious happened. It was needing
some explanation from the management, did they hide something from the auditor.

c. What other steps do you suggest with this newfound information? (5 points)
ANSWER!
Auditor should check more transactions date of legal service; they use different service than
the usual consultation. There is likelihood of they caught in legal case because of something,
and they consult to the other law office. If they have fraud scheme history, auditor must be
more careful and conscientious doing audit process.

7) Find any duplicates and gaps. Do you notice anything interesting? (5 points)
ANSWER!

ROGER COMPANY VENDORS

As of: 02/11/2022 05:11:19

Command: DUPLICATES ON City Last_Activity Last_Review Name State Street Vendor_No_ Zip
OTHER City Last_Activity Last_Review Name State Street Vendor_No_ Zip PRESORT TO
SCREEN
Table: Roger_Company_Vendors

0 duplicates detected

ROGER COMPANY AP TRANSACTIONS

As of: 02/11/2022 05:14:26

Command: DUPLICATES ON Invoice_Amount Invoice_Date Invoice_No_ Product_No_ Quantity

Unit_Cost Vendor_Number OTHER Invoice_Amount Invoice_Date Invoice_No_ Product_No_
Quantity Unit_Cost Vendor_Number PRESORT TO SCREEN
Table: Roger_Company_AP_Transactions

0 duplicates detected
ROGER COMPANY DISBURSEMENT
As of: 02/11/2022 05:13:40
Command: DUPLICATES ON Amount_Paid Balance Date_Paid Description Payee
Vendor_Number Voucher_Number OTHER Amount_Paid Balance Date_Paid Description Payee
Vendor_Number Voucher_Number PRESORT TO SCREEN
Table: Roger_Company_Cash_Disbursement

0 duplicates detected

8) Write a brief paragraph explaining how you believe ACL is most helpful to auditors? (10 points)
ANSWER!
The use of the Audit Command Language (ACL) as a substantive test of the revenue cycle can assist
auditors in conducting audits, especially detecting fraud that may occur. The auditor uses the
auditor's assessment of inherent risk, unavoidable control risk, materiality considerations, and
audit efficiency through tests of controls and substantive tests. Example First, test the data
mismatch because the item number value is wrong and does not match the inventory records. In
determining the nature, timing, and level of substantive testing, the auditor uses the auditor's
assessment of inherent risk, unavoidable control risk, materiality considerations, and audit
efficiency through tests of controls and substantive tests. Second, reviewing investment sales for
abnormal trends by scanning file data for unusual transactions and account balances and using
the ACL stratification feature, namely grouping data for predetermined intervals and calculating
the number of records that enter each interval. Third, examine sales invoices and shipping logs for
missing and duplicate items that may be related to evidence of over-or under- or under-receiving
sales and accounts receivable, and examine out-of-sequence records, gaps in sequence numbers,
and duplicates for the entire file.