7. Substantive testing

Question 1

7. What are the 6 methods to perform tests of details? (one more than the methods for tests of controls)

Answer 1

External Confirmation
Reperformance
Recalculation
Inspection
Observation
Enquiry (can not be used alone)

Question 2

7. What is the minimum that is involved in attending a physical inventory count?

Answer 2

• • Evaluating management’s stocktake instructions and procedures around recording and controls results of entity’s physical inventory count.
• • Observing management’s inventory counts.
• • Inspecting inventory.
• • Performing test counts.