GMAnalytical - Accounting Analytics Syste,s PDF

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Accounting Analytics Syste,s...

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BIBITOR, LLC DATASET SUPPORTING MATERIAL Predictive Analytical Review of Gross Margin Percentages: Completeness, Existence and Accuracy Testing of the Bibitor, LLC. June 30, 2017 Incorporating ACL or IDEA.

AUTHORS: Charles W. Bame-Aldred, Northeastern University Ryan J. Murphy, RSM

Copyright © 2019 Charles Bame-Aldred and the HUB of Analytics Education All rights reserved. For Educational Purposes Only. No part of the Bibitor, LLC dataset nor the supporting materials may be reproduced, distributed, or transmitted in any form or by any means, including photocopying, recording, or other electronic or mechanical methods, without the prior written permission of Charles Bame-Aldred or the HUB of Analytics Education, except in the case of brief quotations embodied in critical reviews and certain other noncommercial uses permitted by copyright law. Indirect use for commercial purposes (i.e., materials referencing or using these materials) is also prohibited, without the prior written permission of Charles Bame-Aldred or the HUB of Analytics Education. For permission requests, email Charles Bame-Aldred, at [email protected]. 1

EXERCISE You are assigned as the Associate on the audit engagement of Bibitor, LLC. The audit team is using Business Intelligence Tools to examine the population of transactions, such as Sales, Purchases, and Inventory. Read the Background Information provided and complete the requirements and document your audit testwork. Background Information: Bibitor, LLC is a retail liquor company with over 75 locations throughout the state of Lincoln. They sell spirits and wine products. Bibitor, LLC has been serving the area for over 50 years. Their wine and spirits selection is hand-picked and focused on value. Their employees are trained as personal beverage concierges and provide unmatched service to all customers. There are over 12,000 brands throughout the organization. Task: The in-charge on the engagement obtained 6 data files from the Controller and the Chief Information Officer for beginning and ending inventory, purchases, sales, purchases by invoice, and purchase prices for each inventory item. The in-charge did a review of Bibitor’s overall gross margin percentage, and it appears reasonable based on the typical retail mark-ups for wine (50%) and spirits (30% - 35%). The in-charge is interested in identifying stores for further testing that may be outside of an acceptable range for gross margin percentage. Required: Use a Business Intelligence Tool to create a predictive analytical review. Use Bibitor’s overall gross margin, each store’s product mix (wine and spirits), and the typical retail mark-ups for wine and spirits to identify an acceptable range in your analytical review. Document your test work using the standard workpaper documentation format.

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