Académique Documents
Professionnel Documents
Culture Documents
Cycle
Tests of Controls and Substantive Tests of
Transactions - I
1.
Trading
2.
Manufacturing
1.
Purchases
2.
3.
4.
Cash in Bank
5.
Purchase Discount
6.
Inventories
7.
Purchase Requisition
2.
Purchase Order
3.
Receiving Report
4.
Vendors invoice
5.
Debit Memo
6.
Voucher
7.
Check
8.
Vendors statement
Purchase Journal
2.
3.
1.
2.
3.
4.
Test of Controls
2.
Substantive Tests
Acquisitions
Cash
Disbursements
Existence or
Occurrence
Recorded acquisitions
are for the items that
were acquired.
Recorded cash
disbursements
occurred.
Completeness
Acquisitions that
occurred are recorded.
Recorded acquisitions
are the entitys
purchases and
liabilities.
Valuation or Allocation
Acquisitions are
recorded for the proper
amounts.
Debits to various
accounts and credits to
cash are valued at
proper amounts.
Presentation and
Disclosure
In accordance with
PAS/PFRS.
In accordance with
PAS/PFRS.
Existence or Occurrence
Controls
Tests of Controls
Acquisitions
should be approved by
authorized personnel.
Voucher
should be prepared for
the purchase of goods
Check signer
should examine the
supporting
documentation and
cancel the documents,
making them paid or
writing the date and
number of the check on
the document.
Tests of Controls :
Acquisition
2.
Completeness
Controls
Tests of Controls
Prenumbered receiving
reports
Determine that a liability
is recorded for all goods
received.
Observe procedure
Account for numerical
sequence of the receiving
report.
Vouchers
Prenumbered and
accounted for as they are
entered in the voucher
register
Observe procedure
Account for numerical
sequence of the receiving
report.
Tests of Controls :
Acquisition
3.
Controls
Tests of Controls
Receiving Reports
Prepared by persons
having access only to a
blind copy of purchase
order details
4.
Valuation or Allocation
Controls
Tests of Controls
Invoice Amounts
Verified by a clerk by
reference to the purchase
orders and receiving
reports.
Tests of Controls :
Acquisition
5.
Controls
Tests of Controls
Auditor should:
Examine the chart of
accounts
Examine the signature of
employee performing the
checking or verification
Existence or Occurrence
. Examine
. Scan
. Inspect
. Trace
. Scan
2.
Completeness
. Trace
. Test
cutoff
. Account
3.
. Trace
. Examine
5.
.
Valuation or Allocation
Recompute invoices and compare invoice price to purchase order.
Presentation and Disclosure
Check the accuracy of accounts on invoices by reference to chart of
accounts.
Existence or Occurrence
Controls
Tests of Controls
Inquire
Procedure if followed
Examine
Outstanding checks list to
determine that checks are
being processed promptly.
2.
Completeness
Controls
Tests of Controls
Controls
Tests of Controls
4.
Valuation or Allocation
Controls
Tests of Controls
Observe procedure
Examine signatures on paid
invoices
5.
Controls
Tests of Controls
Chart of accounts
Account Coding
Existence or occurrence
2.
Completeness
3.
.
4.
.
5.
.
Segregation of Duties
Acquisitions
1.
Authorization
Purchasing department
Requisitioning department
2.
Recordkeeping
Accounting Department
3.
.
Custody
Receiving department
Segregation of Duties
Cash disbursements
1.
Authorization
Purchasing department
Requisitioning department
2.
Recordkeeping
Accounting Department
3.
Custody
Receiving department
Treasurer