Audit Evidence

Question 1

Audit Procedures

(ICORRIIA) Substantive Tests

Answer 1

Used as audit evidence to corroborate or substantiate what management is asserting of the F/S (U-PERCV or COCA CURVE):
The following are TofD:
-Inquiry
-Confirmation
-Observation
-Recalculation
-Reperformance
-Inspection of tangible assets
-Inspection (examination) of records and docs

-Analytical procedures

Question 2

Management Assertions Summarized

COCA CURVE

Answer 2

• Completeness
• Occurence
• Cutoff
• Accuracy

-Classification
-Understandibility
-Rights and Obligations
-Valuation and Allocation
-Existence
(Presentation + Disclosure) not on here

Question 3

What to do if Kiting is suspected?

Answer 3

What is Kiting? Transfer between 2 cash accounts, within the same company, the deposit is recorded in a earlier period, while the disbursement is reported in another period, it overstates Cash.
Procedures: Prepare a bank transfer schedule to ensure that the deposits and disbursements are reported in the same period