This problem is based on the JA Tires data that was first introduced in problem 6-35. If you have not already accessed the data, it can be downloaded from the textbook website. As part of risk assessment procedures, you have been asked to perform some preliminary data analytics on the sales file to assess whether individual transactions or classes of sales transactions represent increased inherent risk because they are large, unusual, or involve related parties. You can perform this analysis using Excel, or audit software such as ACL or IDEA.
a. Identify the five largest sales transactions. Indicate whether you believe these
transactions should require an increase in inherent risk. Do you believe any of these
transactions individually, or in the aggregate, should be considered a significant risk?
b. Identify any other transactions that appear to involve unusual product numbers, customers, or prices.
c. Customer 1027, New York Tire Depot, is considered a related party to JA Tires. What is the total amount of sales to this customer?
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