Assignment 2

Muin Uddin Ahmed (AhU)

Lecturer, North South University
Department of Accounting & Finance
School of Business

Submitted by : S.M. Anaitur Rahman

ID : 1510446030
Date: 8th March, 2018
 Chapter 1

Problem 1

Metaphor’s Credit Card Policy

Most employees have a company credit card. When an employee purchases
products or services for the company, he or she must use a company credit card.

Metaphor Corporation incurs significant expenses in several categories :

i. Travel
ii. Entertainment
iii. Client service
iv. Professional development
v. Internal office expenses

Metaphor’s policy is that all purchases must be assigned to a customer number.

Although most of the customer numbers correspond to external clients, customer
numbers that start with zero correspond to internal departments.
Employees are aware that certain categories of transactions are unacceptable.
For example, employees must not use corporate credit cards for gambling.
Although the company approves some transactions in other categories,
permission must be granted in advance.

Problem 2

ACL might be very useful during different stages of “financial statement audit process”
and they’re written below :

Terms of Engagement
Terms of engagement or an Engagement letter is used to formalize the arrangements
reached between the auditor and the entity. It states a contract between the auditor and
the management. ACL is not relevant for this process, because ACL can not help with
the contract.

Evidence
Evidence process includes obtaining evidences for auditing, conducting transactions
and accumulating transactions into account balances. ACL can be used for this audit
processes.

Assertions
Assertions are management’s expressed or implied claims about information reflected
in the financial statements. Assertions are central of auditing. ACL is relevant to this

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process.

Communication
Communication is issuing audit report to accompany financial statements or issuing
financial statements to users. ACL is not relevant to this audit process.

Problem 3

There many ways in which ACL can be used by the auditors.

Enterprise Risk Management : Auditors can use ACL for enterprise risk
management. This will help the auditor to do the jobs like :
i. Using ACL, auditors can assess and analyze all the risks in one place.
ii. In the audit bucket, auditors can edit and even track risk further in detail.
iii. Auditors would be able to assign and link projects to mitigate the risks.
iv. Organizational heat maps, a useful diagram that maps out visually risks to projects
or business processes.

Workpaper Management : Auditors can use ACL for workpaper management.

This will help the auditor to do the jobs like :
i. Auditors can test each procedure or control and directly attach supporting evidence.
ii. This centralizes all the information auditors need in one screen.
iii. Auditors can walk each control or procedure to ensure comprehensive audits’
design appropriately.
iv. Auditors can create request item for any relevant stakeholders to collect required
information to complete audit.

Integrated Audit Analytics : ACL can be used for integrated audit analytics. This
will help the auditor to do the jobs like :
i. Auditors can easily manipulate columns.
ii. Auditors can get quick summaries and build complex filters.
iii. In ACL everything is auto log and these auto logs can be saved as scripts.

Remote Offline Auditing : ACL can be used for remote offline auditing. ACL
provide the ability to work offline and then sync it back with ACL GRC when
auditors come back at the office. Auditors can create new items like a to-do.

Global Issues Oversight : ACL GRC is an audit management system instantly

helps audit teams automate their issue management process, this includes
capturing issues during the field work, assigning issues to stakeholders for
review and remediation.

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 References:
1. ACL in practice. (2006). Metaphor’s credit card policy. Vancouver, BC, Canada. :
ACL Services Ltd.

2. Risk based auditing. Retrieved from https://www.acl.com/solutions/audit-

management/#_audit-management-needs.