Balance the subsidiary systems monthend balance to the general ledger to ensure accuracy. For departures, the auditor should discuss with the assistant director audit manager and document. Knolls insight, suggestions and support were invaluable. Documentation of substantive analytical procedures. Obtain a listing of trade accounts payables and agree the total to the general ledger by casting and crosscasting. July 2001 gaopcie financial audit manual contents3 400 testing phase 410 overview 420 consider the nature, timing, and extent of tests 430 design efficient tests 440 perform tests and evaluate results 450 sampling control tests 460 compliance tests 470 substantive tests overview 475 substantive analytical procedures 480 substantive. Modification to the auditing procedures listed below may be necessary in order to achieve the audit. Those keys include risk assessment procedures, determining relevant assertions, assessing risks, and developing substantive procedures. Performing audit procedures in response to assessed risks. Start studying acca f8 substantive procedures for inventory.
Design and perform analytical procedures for accounts payable. Chapter 10 substantive testing, computerassisted audit. Substantive testing, computerassisted audit techniques and audit programmes. Audit procedures are either of a compliance nature or of a substantive. Office of the director of audit audit program expenditure audit entity. Office of the director of audit audit procedures budgeted time actual time by initials. Review the combined risk assessment payables proposed solution file for the results of combined risk assessment for payables use substantive audit programpayables file to document substantive procedures 15 min perfecta ltd.
The audit process pre audit procedures our threeyear financial statement audit coverage plan details our level of audit coverage for each entity in the gre. The audit procedures described in paragraphs a14a25 below may be used as risk assessment procedures, tests of controls or substantive procedures, depending on the context in which they are applied by the auditor. Substantive audit procedures for accounts receivable. In this article we looked at the keys to auditing payroll. The audit manual is not a legal document and no regulations or rulings are issued by publication of this manual. Substantive procedure an audit procedure designed to detect material. Audit procedures are the processes, technique, and methods that auditors perform to obtain audit evidence which enables them to make a conclusion on the set audit objective and express their opinion. A11 substantive analytical procedures are generally more effective for largevolumesoftransactionsthattendtobepredictableovertime. Acca f8 substantive procedures for inventory flashcards. Substantive procedures additions and disposals additions obtain a breakdown of. For every entity we intend to audit, we provide an engagement letter detailing the audit. Initial procedures the starting point for substantive. Audit guide for audit committees of small nonprofit. Some substantive analytical procedures for revenue and.
Table 1010 assertions audit procedures occurrence for a sample of sales transactions recorded in the sales journal, vouch the sales. Writing irrelevant audit procedures for example, when you are asked to write audit procedures relating to depreciation of a noncurrent asset, it will be inappropriate to provide general audit procedures relating to audit of noncurrent assets. Audit procedures acca qualification students acca global. Substantive audit procedures on disposal this is important if there are any profitloss on disposal of assets during the auditing period 5. July 2001 gaopcie financial audit manual contents3 400 testing phase 410 overview 420 consider the nature, timing, and extent of tests 430 design efficient tests 440 perform tests and evaluate results 450 sampling control tests 460 compliance tests 470 substantive tests overview 475 substantive analytical procedures 480 substantive detail tests. Substantive procedures are intended to create evidence that an auditor assembles to support the assertion that there are no material misstatements in regard to the completeness, validity, and accuracy of the financial records of an entity. General audit manual this section will be revised and updated by the audit. Design and perform tests of details of balances for accounts payable, including outof. Obtain a listing of trade accounts payables and agree the total to the general. Audit procedure procedures are subject to change without notice. They may also be used at the substantive stage when the auditor is auditing. The quality management audit selections process section provides some explanation about typical audit objectives, typical audit approaches and the.
A substantive procedure is a process, step, or test that creates conclusive evidence regarding the completeness, existence, disclosure, rights, or valuation the five audit assertions of assets andor accounts on the financial statements. Extract all open deposit accounts and stratify by demand deposit account. Substantive testing is part of the substantive audit approach and it is performing at the execution stage of the audit. Chapter 6 audit planning, understanding the client. When an analytical procedure is used as the principal substantive test of a significant financial statement assertion, the auditor should document. Each of the tests is keyed to one or more of the specific account balance audit objectives for ap contained in fig. The auditor should refer to the audit planning documentation to gain an understanding of the financial reporting system and the planned extent of testing for inventories and cost of sales. Review the combined risk assessment ppe proposed solution file for the results of combined risk assessment for property, plant and equipment use substantive audit programppe file to document substantive procedures 15 min perfecta ltd ppe substantive procedures 8. Learn vocabulary, terms, and more with flashcards, games, and other study tools. Chapter 6 audit planning, understanding the client, assessing. Substantive audit procedures are the activities that auditors perform to assess the risk of material misstatements or instances of fraud at the assertion level. As explained in isa 330, audit evidence obtained from previous audits may, in certain circumstances, provide appropriate audit evidence where the auditor performs audit procedures to establish its continuing relevance.
As opposed to the testing of controls, substantive procedures. It describes the characteristics of receivables from an auditing perspective, and then goes on to describe the steps required to audit receivables. Concern about instances in which auditors did not appropriately apply professional skepticism in their audits is a recurring the me in audit inspection findings globally and has been a key issue in discussions about audit. For departures, you must document 1 the justification and 2 how the alternative audit procedures performed were sufficient to achieve the intent of the requirement.
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