Messier 8e Acl

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Principles of Auditing ACL Exercises and Problems Chapter One Problem 1: Briefly describe Metaphor’s credit card policy. Answer: Metaphor’s credit card policy allows for expenses that are involved with three classifications: travel, entertainment, and office and professional. Each of these three classifications includes several categories of allowable expenses. The most significant expenses come from the following categories: travel, entertainment, client service, professional development, and internal office expenses. When the employees charge an expense to the company card they must assign a customer number to the expense. The customer numbers are related to external clients as well as internal departments. The company also informs the employees of transactions that are not allowed to be charged to the company card. An example of a transaction the employees are not allowed to charge to the company card is gambling expenses. If an employee makes charges that are not allowed the will be punished accordingly. Problem 2: Looking at Figure 1-3 in Chapter 1 of your auditing textbook, during which stages of the “financial statement audit process” might ACL be the most useful? Answer: ACL would be most useful to the auditors in both the “obtains evidence” stage and the “tests management assertions against criteria” stage. Problem 3: Go to the ACL internet website by opening ACL Desktop Education Edition and clicking on ACL Homepage under ACL Weblinks. While on the website, click on ACL Solutions under the Solutions tab. Read that page and explain how ACL can help in an audit. Answer: ACL can help in an audit by assisting in the process of identifying, investigating and mitigating business risk. ACL uses three different approaches to aid the auditor which include: data analysis of populations to detect transactions that are not consistent with those typical of
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