LydCohasasignificantnumberofcashtransactionsandrecentnon-currentassetpurchases have been financed by a bank loan. This loan is repayable in equal annual instalments for the next fiveyears.

Required:

a)Explain the procedures to obtain a bank report for audit purposes from Lyd Co's bank and the substantive procedures that should be carried out on thatreport.

b)List the further substantive procedures that should be carried out on the bank balances in Lyd Co's financialstatements.

Outline the paper trail involved in the recording of a sale. Ensure that you discuss both the paperwork and the company departments involved.