SOAL CASE 14 - 33 Dan CASE 16-35

CASE 14 - 33 & CASE 16-35
PENGAUDITAN 2
Oleh : Kelompok 4
Anggota Kelompok :
1. Shahnas Uzdah Zaman (041611333212)
2. Oktaviani Artanti (041711333221)
3. Dentri Kumala S (041911333037)
4. Achmad Syaugi (041911333189)
5. Muhammad Rizki Noor (041911333201)
6. Haura Mahirah (041911333226)
FAKULTAS EKONOMI DAN BISNIS
UNIVERSITAS AIRLANGGA
2020
Case 14-33 (Objective 14-3)
YourTeam.com is an online retailer of college and professional sports team

memorabilia, such as hats, shirts, pennants, and other sports logo products. Consumers select
the college or professional team from a pull-down menu on the company’s Web site. For each
listed team, the Web site provides a product description, picture, and price for all products
sold online. Customers click on the product number of the items they wish to purchase. The
following are internal controls YourTeam.com has established for its online sales:
a. For each control, identify the transaction-related audit objective(s) being

fulfilled if each control is in effect.
b. For each control, describe potential financial misstatements that could occur if
the control was not present.
1. Only products shown on the Web site can be purchased online. Other company
products not shown on the Web site listing are unavailable for online sale.
a. Accuracy and occurrence.
b. Sales will proceed with inaccurate price. Sales for the products which are not
available for sale will recorded as sales. Penjualan akan dilanjutkan dengan
harga yang tidak akurat. Penjualan atas produk yang tidak tersedia untuk dijual
akan dicatat sebagai penjualan.
2. The online sales system is linked to the perpetual inventory system, which verifies
quantities on hand before processing the sale.
a. Accuracy and occurrence.
b. Sales may be processed for that product available using a number of orders,
though order quantity is not on hand. Sales may be logged for products that do
not exist. Penjualan bisa saja diproses untuk produk yang tersedia
menggunakan jumlah pesanan, walaupun jumlah pesanan tidak di tangan.
Penjualan dapat dicatat untuk produk yang tidak ada
3. Before the sale is authorized, YourTeam.com obtains credit card authorization codes
electronically from the credit card agency.
a. Occurrence
b. Sales may be processed even when the customer is unable to pay
4. Online sales are rejected if the customer’s shipping address does not match the credit
card’s billing address.
a. Occurrence
b. Shipments may be made to the wrong person . What i mean by wrong person
is the person who actually don’t own the credit card (maybe that person stole
the credit card)
5. Before the sale is finalized, the online screen shows the product name, description,
unit price, and total sales price for the online transaction. Customers must click on the
Accept or Reject sales button to indicate approval or rejection of the online sale.
a. Accuracy.
b. Sales are likely to be processed inappropriately. For example, the wrong
product name, wrong price, and the wrong number of items sold. Penjualan
tersebut diproses secara kurang benar. Misalnya kesalahan nama produk, salah
harga, dan salah jumlah barang.
6. Once customers approve the online sale, the online sales system generates a Pending
Sales file, which is an online data file that is used by warehouse personnel to process
shipments. Online sales are not recorded in the sales journal until warehouse
personnel enter the bill of lading number and date of shipment into the Pending Sales
data file.
a. Occurence, Timing.
b. Sales may be recorded even though shipment has not occurred. Sales may be
recorded in the wrong time period. Penjualan dapat dicatat walaupun
pengiriman belum dilakukan. Sehingga, pencatatan tersebut terjadi di dalam
periode waktu yang salah.
Case 16-35 (Objective 16-4)
In the confirmation of accounts receivable for the Reliable Service Company, 85 positive and
no negative confirmations were mailed to customers. This represents 35% of the dollar
balance of the total accounts receivable. Second requests were sent for all nonresponses, but
there were still 10 customers who did not respond. The decision was made to perform
alternative procedures on the 10 unanswered confirmation requests. An assistant is requested
to conduct the alternative procedures and report to the senior auditor after he has completed
his tests on two accounts. He prepared the following information for the audit files:
1. Confirmation request no. 9

Customer name — Jolene Milling Co.
Balance — $3,621 at December 31, 2016
Subsequent cash receipts per the
accounts receivable master file: January 15, 2017 — $1,837
January 29, 2017 — $1,263
February 6, 2017 — $1,429
2. Confirmation request no. 26

Customer name — Rosenthal Repair
Service Balance — $2,500 at December 31, 2016
Subsequent cash receipts per the
accounts receivable master file February 9, 2017 — $500
Sales invoices per the accounts receivable
master file (I examined the duplicate invoice) September 1, 2016 — $4,200
a. If you are asked to evaluate the adequacy of the sample size, the type of
confirmation used, and the percent of accounts confirmed, what additional
information will you need?
The expected errors, and the significance of the total of the account receivables, and the
number of accounts that are listed as the balance on the date of dec 31 2016, and the
distribution and size of the receivables, and the control risk assessments that help
understand the internal controls.
b. Discuss the need to send second requests and perform alternative procedures for
nonresponses.
-Sometimes they may need to send 2-3 requests. For many reasons a person may not
have received the first request. They want to have good follow up procedures. If the
auditor makes a second attempt or a call and cannot get a response, then they need to find
alternatives. They can look for cash receipts, shipping receipts, sales invoices and see
when they were established.
-If the amount is material, it is necessary to carry out a follow-up procedure so that
positive confirmation is not returned by the debtor. It is common to send a second
request for confirmation or even a third request. Even with these efforts, some customers
did not return confirmations, so all nonresponses needed to be followed up with a
method known as "alternative procedures."
c. Evaluate the adequacy of the alternative procedures used for verifying the two
nonresponses.
● Confirmation request no. 26, shows a small pmt that has no invoice correlation. It is
missing an invoice #. The auditor wrote the in the master file he was only able to
look at a duplicate invoice so this could have been altered. He can look at the
shipping docs to see what goods were shipped and the details.
● Confirmation request no. 9, shows where the auditor showed the invoices that were
applied to the balance and where the other was applied as of $ 3,621 at December
31, 2016. He must have been able to review copied checks to compare to bank
statements for the info. Not all the info in the non-responses are accurate. He did not
show where the specified invoices were for the specific payments. Also he didn’t
show completeness when reviewing those check items.

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CASE 14 - 33 & CASE 16-35

FAKULTAS EKONOMI DAN BISNIS

YourTeam.com is an online retailer of college and professional sports team

a. For each control, identify the transaction-related audit objective(s) being

Case 16-35 (Objective 16-4)

1. Confirmation request no. 9

2. Confirmation request no. 26

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