Youhave been hired to perform a risk-based internal audit of the PCard Program forthe first four monthsof 2021. Prior to the formal assignments of this case, you are required to gainan understanding of the data and the client by performing some basic analysis.As part of your preliminary fact gathering, you learn that cardholders have thefollowing limits: $2,500 maximum per transaction, a $2,500 daily maximum, and amonthly maximum of $10,000. With this information in hand, you now request thePCard Program files.
First, review all provided information. Verify that you have the PCard Transactions Excel data file, the PCard Program Manual Word file, and the Risk-Control Matrix Excel file.
Validity of data file:
Verify that all fields are in the proper format (DATE is a Date Field, etc.).
Verify that all fields needed for analysis are included.
Completeness of data file: Procurement has provided control totals. Recalculate the totals to confirm that all records are included. See Figure 1 in the PCard Case.
Conduct some preliminary analysis on the dataset (this analysis may be done using Excel, ActiveData, or IDEA). Such analyses should include but should not be limited to:
Perform a Benfords Law Analysis (first digit and first- and second-digit analysis).
Determine how many cardholders used their cards during the audit period.
Determine who are the top five users of/spenders with the PCard for:
total purchases during the audit period.
monthly purchases (for each month)
Determine which cardholders (if any) have multiple cards.
Determine whether cardholders have duplicate transactions. Note: You may identify seemingly duplicate transactions that may be recommended for manual inspection.
Deliverable: Write a memo (two pages or less) to Dr. Keith Newell, President of the University Board of Regents, highlighting the status of the project. Use appropriate grammar, spelling, and formatting (i.e., 12-point times roman font, single-spaced, headers, footers, titles/descriptions of tests). Use an appendix to the memo if more detailed information or schedules are to be attached.
Submission and grading note: an unlimited number of submissions are allowed up to the due date so that you may revise your work if you need to do so; however, only the last submission will be graded. Grades will normally be available two days after the due date.