Use this template to document your use of ACL.

Purpose of this workpaper

This workpaper is used to document data analysis procedures using ACL.

Using this workpaper

1. Rename this workpaper based on the account you are testing. 2. Complete the "Application Information" worksheet. 3. Ask the entity's IT staff to complete the "Record Layout for Filename" worksheet. Getting the correct information regarding the entity's data will improve the effectiveness and efficiency of your work. 4. Use ACL to complete the audit procedures, analyze the data, and identify additional opportunities for analysis. 5. Document the results of your work in your working papers. Sample selections and other audit work may be documented in this workbook or in the analysis workbook(s) for the account. Users may consider combining the relevant worksheets herein with the analysis workbook(s). 6. Upon completion of the audit: - Return any physical media such as disks and tapes to the entity. - Purge the data files & other work not included in the final workpapers from your computer. - Backup the ACL document for use in future years. 7. Delete the "Example" worksheet.

Guidance

We are required to select items for the sample in such a way that each sampling unit in the population has a chance of selection [U.S. AAM G110.09]. We determine an appropriate sample size, based on U.S. AAM Figure 5410.1. Monetary Unit Sampling (MUS) is a type of value-weighted selection in which sample size, selection and evaluation results in a conclusion in monetary amounts [U.S. AAM 5410A.07]. This approach directs the audit effort to the larger value items because they have a greater chance of selection, and can result in smaller sample sizes [adapted from U.S. AAM 5410A.06]. Considering the nature of the population and risks of material misstatement, we may often select larger items (because size is a characteristic of risk of material misstatement) when making our selection of items for the sample [U.S. AAM 5410.32]. If the population generally isnt expected to contain items that are expected to be greater than, for example, performance materiality [tolerable misstatement], we typically select some or all of these items. We end up with two separate populations, one containing the items greater than performance materiality [tolerable misstatement] and then one containing items less than performance materiality [tolerable misstatement]. We select an appropriate sample, based on Figure 5410.1, from the population containing items less than performance materiality [tolerable misstatement] [U.S. AAM 5410.33]. If the population is generally expected to be comprised of items that are greater than, for example, performance materiality [tolerable misstatement], we are not necessarily required to select all of these items as the characteristic of being greater than performance materiality [tolerable misstatement] is not unusual. We select an appropriate sample size, based on Figure 5410.1, from the population. [U.S. AAM 5410.34]

Application Information Worksheet:

The "Application Information" worksheet is designed to help document the data file information for the ACL application being run. The following explanations for certain terms may be useful: Data File Name:

All entity data needs to be carefully monitored and maintained in a secure location. At the end of the engagement, all entity data files need to be returned to the entity and any interim work (e.g., sorts, intermediate extracts, etc.) needs to be purged from our computers. Contents of Data File: Describe the nature of the information contained in the data file. For example: Accounts Payable, Accounts Receivable, Payroll, Inventory, Fixed Asset. Media Format: The physical media upon which the data file was received. For example: 1600 9-Track, 6250 9-Track, 3480 Cartridge, 3490 Cartridge, Zip Disk. Standard Labels: If data is provided in a mainframe format, does the data cartridge or 9-track tape comply with the IBM-standard labeling convention?

Record Layout for Filename Worksheet:

This sheet is used to document the record layout of each file used. The sheet may be copied for multiple files. "Filename" can be replaced with the actual name of the file. The following explanations of certain terms may be useful: Format: N - Numeric (Add Packed, Zoned or Binary when necessary) C - Character D - Date (provide date format, such as MMDDYY) Start: This is the position of the first byte of the field in relation to the start of the record. Start can therefore range between 1 and the length of the record.

Instructions (read in conjunction with reviewing the Exampleworksheet or using the ACL Sampling worksheet
1. Enter the following parameters into the "ACL Sampling" worksheet: a. Population b. Performance Materiality c. Materiality 2. Note: The worksheet will automatically calculate the "Population Size - Multiples of Performance Materiality." 3. Select the applicable Risk level based on U.S. AAM Figure 5410.1, Audit Sampling Size Table. 4. Enter the Sample Size based on U.S. AAM Figure 5410.1, Audit Sampling Size Table. 5. Note: The worksheet will automatically calculate the "Sampling Interval" (note that the sampling interval value may be numerically different than performance materiality). 6. Import the source data into ACL. 7. In the ACL Sample Input Screen: a. Select the Sample Type MUS b. Select the Sample Parameter Fixed Interval c. Input the Sampling Interval (calculated in Step 5) into the "Interval box d. Input the random starting point into the "Start box (a random amount that is not greater than the Sampling Interval)

Monetary Unit Sampling (MUS) Reconciliation Worksheet:

This worksheet may be used to document the reconciliation of the MUS sample. This worksheet may be copied and used for each MUS sample application. This worksheet, or just the data, will often be copied into the workpapers where the documentation of the testing is completed. The data for the MUS reconciliation is created by ACL. To copy the data into this worksheet, paste the MUS results into the worksheet and then transfer the following information to the MUS reconciliation: - Initial selection (starting) point - Sampling interval - Total number of selections (sample size) - Top stratum number and value - Selection remainder - Population value

The objective of the MUS reconciliation is to determine whether the correct number of sample selections was made. If the correct number of sample selections was made, the MUS reconciliation will balance. If the reconciliation does not balance, it is important to review the parameters and the calculated sample size to determine what is causing the difference. The MUS reconciliation is performed when performing a Monetary Unit Sampling even when using sample sizes from U.S. AAM Figure 5410.1, as items in the population may be selected multiple times. Note: ACL will only return/show the unique selections, meaning items selected twice or more will not be repeated/shown again. If the population contains some items greater than the calculated sampling interval, there is a possibility that ACL will select those items twice or more. For example, if based on U.S. AAM Figure 5410.1, we determined 15 as our total number of selections, and there are two items in the population that are greater than the sampling interval, there is a possibility that ACL will only return with 13 unique samples (as two items exceeding the sampling interval were selected twice by ACL). This is not unusual and testing the 13 unique items will address the 15-selection determination from U.S. AAM Figure 5410.1.