Download the following MP4 File The file will help you with the case requirements
Analytics_mindset_case_study_TechWear_Part1.mp4Download Analytics_mindset_case_study_TechWear_Part1.mp4 https://csuglobal.instructure.com/media_objects_iframe/m-5quJ3MEA8Gr12RTm73ubYtEvXZVyGuSX?type=video
Case and Assignment Requirements:
Part I
Data
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 (Links to an external site.) Download Analytics_mindset_case_study_Techwear_Part1_data file.xls (Links to an external site.)) so you can begin your analysis. The data file includes the following fields:
Type: this is the type of transaction, which is either a sale (Sales) or a cash receipt (CashReceipt).
transaction number: this is the transaction number (beginning with 1001).
AppliedToTransaction Number: this is the sales transaction number to which a cash receipt is applied.
CustNum: this is a unique customer number used to identify each customer.
CustName: this is the customer’s name.
TransactionDate: this is the date of the sale or cash receipt.
Amount: this is the amount of the sale or cash receipt. Cash receipts will show a negative amount.
InvoiceDate: this is the date the sale was invoiced (billed).
ShipDate: this is the date the goods were shipped.
Required
Become familiar with your data file. Make certain that your data is complete and accurate before performing any analysis. Complete the following using Excel:
You’ve been told that the accounts receivable balance on the general ledger at December 31, 2015, is $684,491.19. You also know that as a start-up company, the beginning accounts receivable balance is zero. You are also told that there are no returns or write-offs in 2015. Verify this balance.
You’ve also been told that TechWear only conducts business with the following 15 approved customers. Validate that there are no other customer names and that no customer names are misspelled.
Bigmart
Cool Threads
Corner Runner
Cross Country Mart
Family Fit
Fit N Fun
Goodway
Neighborhood Athletic Supply
Northern Lites
Runner’s Market
Southeast Regional
Southern Runners
Super Runners Mark
Urban Runner
ValueChoice
The sales transaction log shows that 230 sales were transacted this year, beginning with transaction 1001. Verify that the data for all of these invoices has been captured and that there are no additional invoices or duplicates included in the file.
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):
View tab—freeze top row
Home tab—summation
Data tab—remove duplicates
Data tab—data validation
Background:
This is a three-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:
Ask the right business questions
Extract, transform and load relevant data (i.e., the ETL process)
Apply appropriate data analytic techniques
Interpret and share results with stakeholders
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:
Heart rate
Perspiration rate
Calories burned
Exercise efficiency (percent of capacity)
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.
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