2023/10/17 12:15 8.3 Tutorial: ACCT3600 Accounting and Auditing in Practice
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8.3 Tutorial
This is a space to find resources and instructions relating to your
weekly tutorial.
This week's tutorial
This week, you will be working in your groups on the following exercises:
(Select ► to reveal)
Exercise 1
9.28
Your team has been assigned to the audit of Twilight Years Ltd for the year ended 30 June
2018. Twilight Years runs nursing homes and its patient revenue systems are as follows:
patient database—a master file containing personal details of all patients, as well as the
period of their stay, the services provided to them and their medical insurance details
rates database—a master file of all accommodation billing rates, rebate discounts and
government assistance benefits
billing system—a system that produces invoices to charge patients for services provided,
such as accommodation, medications and medical services. This software includes a
complex formula to allow for government subsidies, pensioner benefits and private medical
insurance.
One of the staff informs you that there has been an unusually high number of complaints from
recently discharged patients that the fee invoiced did not align with the agreed medical fund
and pensioner subsidy rates.
Required
Identify one relevant and practical computer-assisted audit technique (CAAT) you could use to
assist in gathering evidence on the accuracy of revenue at Twilight Years.
2023/10/17 12:15 8.3 Tutorial: ACCT3600 Accounting and Auditing in Practice
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Additional exercise 1
Additional question
Your client, Macquarie Holdings, holds a large portfolio of investments in shares of other
entities, approximately 80% of them being listed on the Australian Stock Exchange (ASX).
Approximately 800 parcels of shares are held at any time.
The following data on each share parcel is maintained on the share investment master file.
Investment identification number
Date purchased
Date sold
Investee name
Total number of shares purchased
Number of shares sold
Number of shares currently held
Investment cost for shares currently held
Year-end market value of shares held
Profit/loss on sale
Dividend income for the period
Dividend income to date
The above data is maintained on the IT system for a period of five years.
Required:
A. Identify the two (2) key assertions the auditor will need to address for ‘share investments’
account balance.
B. Discuss how generalised audit software (GAS) other than exception reports, could assist in
the audit of these investments for each of the assertions identified in (a) above.
C. Provide an example of an exception report the auditor might create to gather evidence on
the two assertions identified in (a) above.
D. Outline one (1) practical programmed application control that you would expect to find in
Macquarie Holding’s share investment master file.
2023/10/17 12:15 8.3 Tutorial: ACCT3600 Accounting and Auditing in Practice
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Your answer to parts (a) and (b) should be presented in the following format.
Assertion Use of GAS to Assist in the Audit
1.
2.
Your answer to parts (c) should be presented in the following format.
Report Information in Report Assertion Use of Report
1.
2.
Additional exercise 2
Auditors place great reliance on the use of Generalised Auditing Software (GAS), in order to
collect sufficient and appropriate evidence linking to key accounts in the financial statements.
Required:
Provide an example of how the auditor would use GAS to collect evidence to validate the prime
assertion for each of the two (2) key accounts listed below:
A. The existence assertion of accounts receivable, and
B. The completeness assertion of accounts payable.
Tutorial solutions
Guidance and model answers for the tutorial questions will be made available here
(https://canvas.sydney.edu.au/courses/53454/pages/8-dot-4-solutions) on Friday at 9am after the
completion of all tutorials.
2023/10/17 12:15 8.3 Tutorial: ACCT3600 Accounting and Auditing in Practice
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