Using the Computer to DiscoverIntentional Financial Misstatements in Transactions and AccountBalances. AMI International is...Using...

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Accounting

Using the Computer to DiscoverIntentional Financial Misstatements in Transactions and AccountBalances. AMI International is a large office products company.Headquarters management imposed pressure on operating divisionmanagers to meet profit forecasts. The division managers met theseprofit goals using several accounting manipulations involving therecord-keeping system that maintained all transactions and accountbalances on computer files. Employees who operated the computeraccounting system were aware of the modifications of policy themanagers ordered to accomplish the financial statementmanipulations. The management and employees carried out theseactivities:
1.Deferred inventory write-downsfor obsolete and damaged goods.
2.Kept open the sales entrysystem after the quarterly and annual cutoff dates, recording salesof goods shipped after the cutoff dates.
3.Recorded as sales transactionsthat had been coded as leases of office equipment.
4.Recorded shipments to branchoffices as sales.
5.Postponed recording vendors’invoices for parts and services until later, but the actual invoicedate was faithfully entered according to accounting policy.
Required:
Describe one or more proceduresthat could be performed with CAATs to detect signs of each of thesetransaction manipulations. Limit your answer to the actual workaccomplished by the computer software

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Answer Automated bookkeeping applications catch and produce voluminous measures of information that more often than not are accessible just on machine lucid records Computer Assisted Audit Techniques CAATs can be utilized to get to the information and sort out it into an arrangement helpful to the review teamAudit programming can be utilized to achieve various review systems See Answer

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In: AccountingUsing the Computer to DiscoverIntentional Financial Misstatements in Transactions and AccountBalances. AMI International is...Using the Computer to DiscoverIntentional Financial Misstatements in Transactions and AccountBalances. AMI International is a large office products company.Headquarters management imposed pressure on operating divisionmanagers to meet profit forecasts. The division managers met theseprofit goals using several accounting manipulations involving therecord-keeping system that maintained all transactions and accountbalances on computer files. Employees who operated the computeraccounting system were aware of the modifications of policy themanagers ordered to accomplish the financial statementmanipulations. The management and employees carried out theseactivities:1.Deferred inventory write-downsfor obsolete and damaged goods.2.Kept open the sales entrysystem after the quarterly and annual cutoff dates, recording salesof goods shipped after the cutoff dates.3.Recorded as sales transactionsthat had been coded as leases of office equipment.4.Recorded shipments to branchoffices as sales.5.Postponed recording vendors’invoices for parts and services until later, but the actual invoicedate was faithfully entered according to accounting policy.Required:Describe one or more proceduresthat could be performed with CAATs to detect signs of each of thesetransaction manipulations. Limit your answer to the actual workaccomplished by the computer software