Requirement e. For each likely misstatement, identify a substantive audit procedure to determine whether the misstatement exists. (Substantive audit procedures may be used more than once.) ) (Click the icon to view the substantive audit procedures.) Substantive Audit Substantive Audit Procedures Internal Controls Procedure 1. Approved purchase orders are required for all acquisitions of goods. Prenumbered receiving reports are prepared as support for acquisitions and 2. numerically accounted for. Dates on receiving reports are compared with vendors' invoices before entry into the 3. acquisitions journal. W s. Compare payee name on cancelled check to supporting documents. Compare vendors' invoices to acquisitions journal for reasonableness of t. account classification. 4. Account classifications are reviewed by someone other than the preparer. > 5. Vendors' invoices are recalculated before payment. 3 x 6. All checks are signed by the owner or manager The authorized signer compares data on supporting documents with checks and 7. electronic funds transfer authorizations. u. Confirm accounts payable, especially vendors with small or zero balances. v. Examine supporting documents for appropriateness of expenditures. w. Examine supporting documents for every payment to selected vendors. X. Foot subsidiary records and compare to control account. y. Perform search for unrecorded liabilities. z. Recalculation of vendors' invoices. > N 8. Checks are mailed by the owner or a person under her supervision after signing. All supporting documents are cancelled after checks are signed or electronic funds 9. transfers are approved. The accounts payable master file is updated, balanced, and reconciled to the general 10. ledger monthly. Print Done