Académique Documents
Professionnel Documents
Culture Documents
IV. Valuation or E. To determine if cash is recorded and 10 Verify existence of cash in banks under
Allocation presented at the proper amount. receivership, cash subject to court's
restraining order, in foreign banks and
in foreign currency. This is in addition
to the foregoing procedures which will
enable the auditor to verify proper
valuation of cash.
III. Completeness B. To determine that all transactions 5 Test cutoff of sales and
relative to receivables have been sales returns to
recorded in the proper determine whether
accounting period. receivables are recorded
in the proper accounting
period.
3 Confirm inventories in
public warehouse and
with consignees.
II. Completene B. 1 To determine whether all 4 Obtain a final inventory
ss transactions related to inventory listings from client.
are ecorded in the proper
accounting period.
6 Test numerical
sequence of inventory
purchase requisition.
7 Review entries to cost
of goods sold.
8 Perform analytical
review related to
inventories and cost of
goods sold.
III. Rights and C. To determine whether the 9 Make inquiries of
Obligations company has legal title or management regarding
ownership rights to inventory inventory ownership
items and inventories exclude and examine
items billed to customers or consignment
IV. Valuation or D owned
To by others.
determine whether the 10 agreements.
Evaluate the bases and
Allocation inventoriesare properly stated methods of inventory
with respect to pricing.
1 Cost determined by an 11 Vouch and test
acceptable method consistently inventory pricing.
applied.
2 Slow-moving, excess, defective, 12 Check inventory for
and absolete items identified quality and/or
and reduced to replacement obsolescence.
cost or net realizable value if
lower than cost.
14 Evaluate financial
statement presentation
of inventories and cost
of goods sold, including
the adequacy of
disclosure.
Done by date remarks
Substantive Tests of Investments
3 Obtain confirmation of
securities held ny others.
6 Perform analytical
procedured
7 Compute independently
revenue fron securities.
IV. Valuation D To determine that 8 Determine market value of
investments are valued securities at balance sheet
properly in accordance with date.
generally accepted
accounting principles.
II. Completenes B. To determine that property and equipment 3 Vouch additions to property and
s include all capitalizable costs and equipment during the year.
capitalizable costs are not expensed.
III. Rights and C. To determine that the company has legal 5 Examine evidence of legal ownership of
Obligations title or equivalent ownership rights to property and equipment.
property and equipment included in the
statement of financial position and the
statement of financial position and the
related lease obligation of capitalized
leased assets is recognized.
IV. Valuation or D. To determine that property and equipment 8 Analyze repair and maintenance
Allocation is stated at cost and allowances for expense accounts.
depreciation or depletion are computed on
the basis of acceptable and consistent
methods.
2 Examine documentation
supporting intangibles.
III. Rights and Obligations C. To determine that the intangibles 5 In addition to audit
are owned by the company. procedure no. 2 perform
analytical procedures.
1 Prepaid Expenses
a. Inspect insurance policies on a test basis.
b. Review coverage premiums.
c. Vouch premium paid and amounts charged to expense during the year and
amounts prepaid at year-end.
2 Prepaid Advertising
a. Examine advertising contracts with advertising agencies and note effective dates
covered by the agreement. Determine propriety of charges in the current year.
c. Verify distribution of the prepaid amount to prepaid rent and rental expense by
recalculating the amounts.
4 Prepaid Intereset
a. Examine loan agreement and vouch interest payments.
b. Verify mathematical accuracy of the computation of interest expense and prepaid
interest.
5 Office Supplies
a. Vouch purchases of office supplies on a test basis
b. Conduct physical count of supplies inventory on a test basis.
6 Other Prepayments
a. Review existence of adequate records and documentation.
b. Evaluate allocation of prepaid expenses between asset and expense accounts.
B. Deferred Charges
7 Perform analytical
procedures.
III. Rights and C. To determine that payables 8 In addition to audit procedure
Obligation represent valid and legal no. 3, review documentation
claims of third parties from in client's files.
the client.
9 Examine subsequent
payments to creditors.
IV. Valuaation or D. To determine that payables are 10 Vouch accounts payable
Allocation recorded at the proper schedule.
amount.
11 Test computation of accrued
or prepaid interest.
V. Presentation and E. To determine that payables are 12 Scan list of payables to major
Disclosure presented and disclosed type of obligation is properly
according to PAS/PFRS. described and classified.
Determine that contingent
liabilities are properly
diclosed.
2 To Determine whether all material unusual and infrequent items are segregated
properly in the statement of comprehensive income (presentation).
Audit Procedures
1 Analytical review of operations
2 Account Analysis
1 Obtain copy of the General ledger entry of the Following: