You will need Microsoft Excel to prepare this assignment. You have two weeks to complete this Assignment, which is due at the end of Module 6.
This is a two-part case where students are asked to assume the role of an auditor and perform various audit procedures on the order-to-cash business cycle (accounts receivable and sales) for TechWear, a start-up company that manufactures and sells upper-end, high-tech sportswear. Throughout the case, students will be developing their analytics mindset in an audit context by learning how to:
A brief overview of TechWear:
TechWear is a privately owned business that began operations in March 2015. Its sole business is the manufacture and sale of upper-end, high-tech sportswear. It only sells to large distribution outlets. Its primary product is a line of lightweight exercise clothes that contain a new, long-range RFID chip that captures the following information about the user based on personal data (age and weight, for example) entered by the user:
The chip is able to continuously send this information to a host device as far away as 15 miles. The clothes are also GPS-enabled and able to track routes, distances, and elevations. Management prides itself on being on the cutting edge. The company expects to conduct an IPO within a year or two.
TechWear recently retained your firm as its auditors, largely because of your commitment to conduct a highly efficient, technology-enabled audit.
Case and Assignment Requirements:
You are first responsible for performing a risk assessment of TechWear related to its order-to-cash function. Therefore, you know that your focus needs to be on sales and cash transactions. Your first task is to acquire the data for these transactions. You work with TechWear’s IT group to gain access to its sales and cash receipts data for its start-up period of operations—March through December 2015.
You have been provided with an Excel file with this data (Analytics_mindset_case_study_Techwear_Part1_data file.xls) so you can begin your analysis. The data file includes the following fields:
Become familiar with your data file. Make certain that your data is complete and accurate before performing any analysis. Complete the following using Excel:
Part I (additional guidance):
This section allows students to become familiar with the background company and the data for the order-to-cash business process (sales and cash receipts covering the start-up period of operations, which runs from March 5 through December 31, 2015).
Students are asked to perform some select steps in the ETL process to make certain of the integrity of the data they will be using for their analysis (note that there are more possible steps that could be done, but the requirements are limited for purposes of this case). This work is done in Excel. Students are using some basic Excel skills, including (covering questions 1 through 3):
Now that you have your data, you need to perform appropriate analytics techniques to inform your risk assessment for the order-to-cash cycle for TechWear.
Part II (additional guidance):
This section asks students to develop an accounts receivable trial balance for December 31, 2015, and perform an initial risk assessment of the collectibility of that balance. This work is done in Excel. Students are using some moderate-level Excel skills, including: (Note that there are MP4 files here to provide you some guidance.)
You are to submit a Word document with your answers to the three Part I Questions.
You are to submit Excel document, using the Tab function in Excel, to answer the four Part II Questions.
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