Question
QUESTION 3 Listed below are ten substantive audit procedures: 1)Recheck and recalculate the company-prepared bank reconciliation. 2)Obtain the company's depreciation rates from the financial statements
QUESTION 3
Listed below are ten substantive audit procedures:
1)Recheck and recalculate the company-prepared bank reconciliation.
2)Obtain the company's depreciation rates from the financial statements and check they have been applied correctly.
3)Perform accounts receivable confirmations.
4)Review a sample of repairs and maintenance expenditure for the year to ensure that it does not include any items that are capital in nature.
5)Ensure that all contingent liabilities have been included in the notes to the accounts.
6)Send out a bank confirmation letter to confirm a loan taken out by the company during the year.
7)Review all invoices received for one month after the year-end to ensure that they do not relate to the current year.
8)Select a sample of non-current assets to inspect and sight them.
9)Select a sample of invoices and confirm that they have been properly recorded in the sales ledger.
10)Review and recheck the adequacy of the company's allowance for doubtful debts.
REQUIRED:
a)For EACH test above, indicate what Type of Substantive audit procedure to which it relates (analytical review, tests of details of balances or tests of details of transactions).
b)Give an assertion (ONLY ONE) to which each test relates.
c)Indicate what Type of Audit Evidence obtained for EACH test.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started