IS AUDIT

FINAL EXAM
APRIL 6, 2019

1. Testing the valuation and allocation assertion

View the aging of accounts receivable and provide for Allowance for Doubtful Accounts based on company’s policies:
 Open the aging report of the company’s customer balances

Go to Financial > Financial Report > Accounting > Aging > Customer Receivables Aging

 In the Selection Criteria insert the following information:

Code: From C20000 to C99999

Aging Date: 03.31.14
Click Ok

 SAP Business One will generate Customer Receivables Aging showing the age of receivables from the customers.

 As an auditor please perform your analysis based on aging and compute the appropriate amount of Allowance for Doubtful accounts. According to the Industry experiences, the
collectability of accounts are as follows:

0-1 Month = 100%

Over one month not over two months = 98%
Over two months not over three months = 95%
Over three months not over four months = 92%
Over four months = 90%

 How much is the proposed allowance for doubtful accounts? Please use FX rates as follows:
o GBP at Php 80.00
o USD at Php 50.00

2. Calculate the Vendor Liabilities Aging?

Accounts based on company’s policies:

 Open the aging report of the company’s customer balances
Go to Financial > Financial Report > Accounting > Aging > Vendor Liabilities Aging

 In the Selection Criteria insert the following information:

Code: From V1010 to V70000
 Aging Date: 30.09.09
Click Ok

 SAP Business One will generate Vendor Liabilities Aging showing the age of liabilities from the vendors.
 Please provide the past due balances of each vendor with aging in PHP.

VENDOR'S AGING REPORT

Vendor Future Remit 0 - 30 31 - 60 61 - 90 91 - 120 121+
Vendor Name Balance Due
Code
CURR FX AMOUNT PHP AMOUNT CURR FX AMOUNT PHP AMOUNT CURR FX AMOUNT PHP AMOUNT CURR FX AMOUNT PHP AMOUNT CURR FX AMOUNT PHP AMOUNT CURR FX AMOUNT PHP AMOUNT
V1010 Far East Imports GBP (286,393.48) GBP -22,106.21 -17,684.97 GBP -3,136.69 -2,509.35 GBP -13,706.55 -10,965.24 GBP -247,444.03 -197,955.22
V20000 Lasercom GBP (185,928.33) GBP -2,966.27 -2,373.02 GBP -11,412.90 -9,130.32 GBP -1,905.16 -1,524.13 GBP -169,644.00 -135,715.20
V23000 Anthony Smith GBP (408,077.50) GBP -4,653.00 -3,722.40 GBP -31,490.00 -25,192.00 GBP -3,877.50 -3,102.00 GBP -368,057.00 -294,445.60
V30000 Blockies Corporation EUR (243,752.20) EUR -13,335.88 -800,152.80 EUR -14,020.13 -8,412.08 EUR -4,509.48 -2,705.69 EUR -9,199.11 -5,519.47 EUR -4,142.22 -2,485.33 EUR -198,545.38 -119,127.23
V60000 CTI Computers GBP (238,541.90) GBP -2,100.00 -126,000.00 GBP -12,150.40 -9,720.32 GBP -21,375.00 -17,100.00 GBP -9,525.00 -7,620.00 GBP -193,391.50 -154,713.20
Total -926,152.80 -38,190.38 -18,067.76 -58,776.71 -14,731.46 -901,956.45
FX Rates: GBP at Php 80.00/EUR at Php 60.00