Auditing and Assurance Service: Inventory Data Analysis Assignment

This assignment focuses on auditing and assurance services, specifically addressing the analysis of inventory data. The solution outlines the audit work performed on a master data file, including converting the data to Excel format and applying stratum analysis to assess inventory values. The analysis involves computing count, average, and sum values across various strata, evaluating product age, and determining margins. The assignment also details the creation of an audit working paper, outlining steps such as data import, summarization, filtering, pivot table analysis, charting, and random sampling. The document emphasizes the importance of data management and matching for effective audit work, providing a comprehensive approach to inventory data analysis and audit documentation. The assignment concludes with a bibliography of relevant sources.

Running head: AUDITING AND ASSURANCE SERVICE
Auditing and Assurance Service
Name of the Author:
Name of the University:
Author’s Note:

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AUDITING AND ASSURANCE SERVICE
Table of Contents
Answer to Question No 1................................................................................................................2
Answer to Question No 2................................................................................................................3
Bibliography....................................................................................................................................5

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Answer to Question No 1
The first question requires to list and explain the audit work that would be performed on the
data data master file. It is seen that the master file that has been provided is in text format and
requires to be converted into excel in order to undertake analysis.
With respect to the data file that has been provided in the excel sheet, master data with
respect to the inventory would be undergoing the process of stratum where the count, average
and sum of six layers would be evaluated. The six layers are constructed with the help of the
values that are available for each each of the product numbers. Stratum 1 comprises of the values
that are below 0. Stratum 2 collects the values that are more than 0 but are less than 1000.
Stratum 3 has values that are more than 1000 and are less than 5000. Stratum 4 has values more
than 5000 but are less than 10000. Stratum 5 has figures that are more than 10000 but is less than
50000. The last layer has values that are more than 50000 but less than 100000. The count,
average and sum of the figures would provide answers that would aid in the process of auditing.
The next process comprises of computing the age of the products that are within the inventory
and it is seen that the value comprises to more than 360. The next performance will be
computing the LOC 6 and values that are above 5000. The process after this would be computing
the margin so that the inventory level can be evaluated in an effective manner. The last work
would be computing the sub total that would be influential for the completion of the audit work.

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Answer to Question No 2
This question requires to prepare an audit working paper to record the work done earlier.
The process that needs to be undertaken by taking help of the processes involve:
 Importing the accounting data into the Microsoft Excel
 Summarising and sorting the data
 Exemptions reporting making use of the advanced filters
 Pivot tables for data evaluation
 Charting the outcomes
 Handling the report files
 Choosing the random sample
 Locating the matching data or joining
The accounting data with respect to the inventory accessories would be importing the data
into the excel sheet and then making use of the master data to sort the data within various stratum
or layers so that the data would be analysed in an effective manner. By making use of the
advanced filters these data are assessed in order to construct the age of the data. The computation
of the age of the data leads to the importing the data in the pivot table in order to compute the
margin and the discovering the sub total values of each and every stratum. The results that are
obtained from the inventory are charted with the help of the Excel where the results obtained
from the data can be presented in the form of charts. The results that are obtained from the excel
sheet requires to be stored in a report file and these files need to be managed effectively so that
the results can be used for future analysis recording the audit report. The data that is collected
from the master file is analysed with the help of random sample out of the total data so that

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effective results can be obtained. The location and the matching of the data is even necessary in
order to undertake the audit work.

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AUDITING AND ASSURANCE SERVICE
Bibliography
Backof, A. G. (2015). The impact of audit evidence documentation on jurors' negligence verdicts
and damage awards. The Accounting Review, 90(6), 2177-2204.
Bradley, K. A., Glass, J. E., Rubinsky, A. D., Lapham, G. T., Berger, D., Achtmeyer, C., ... &
Kivlahan, D. R. (2017, June). PREDICTIVE VALIDITY OF THE AUDIT-C
MODIFIED BY PRIOR DOCUMENTATION OF SUBSTANCE USE DISORDERS.
In ALCOHOLISM-CLINICAL AND EXPERIMENTAL RESEARCH (Vol. 41, pp. 325A-
325A). 111 RIVER ST, HOBOKEN 07030-5774, NJ USA: WILEY.
Drolet, M., & Nirmal, D. (2017, March). Risk assessment of smoking in pregnancy: an audit of
documentation in maternal handheld notes. In BJOG-AN INTERNATIONAL JOURNAL
OF OBSTETRICS AND GYNAECOLOGY(Vol. 124, pp. 125-125). 111 RIVER ST,
HOBOKEN 07030-5774, NJ USA: WILEY.
Mayes Jr, C. R. (2017). Audit documentation: Tips for getting it right. Journal of
Accountancy, 223(6), 38.