Using the computer to discover international financialmisstatements in transactions and account balances. AMIinternational is a large office products company. Headquartersmanagement imposed pressure on operating division managers to meetprofit forecasts. The division managers met these profit goalsusing several accounting manipulations involving the record-keepingsystem that maintained all transactions and account balances oncomputer files. Employees who operated the computer accountingsystem were aware of the modifications of policy the managersordered to accomplish the financial statement manipulations. Themanagement and employees carried out these activities: 1. Deferredinventory write-downs for obsolote and damaged goods. 2. Kept openthe sales entry system after the quarterly and annual cutoff dates,recording sales of goods shipped after the cutoff dates. 3.Recorded as sales transactions that had been as leases of officeequipment. 4. Recorded shipments to branch offices as sales. 5.Postponed recording vendors invoices for parts and services untillater, but the actual invoice date was faithfully entered accordingto accounting policy. REQUIRED: Describe one or more proceduresthat could be performed with CAAT to detect signs of each of thesetransactions manipulations. Limit your answer to the actual workaccomplished by the computer software.
