Ch. 15 - Substantive Procedures

Question 1

Types of substantive procedures

Answer 1

1. Inspection
2. Observation
3. Inquiry
4. External Confirmation
5. Recalculation
6. Reperformance
7. Analytical Procedures

Question 2

Inspection - procedures

Answer 2

examining records, documents and physical assets

Question 3

Observation - procedures

Answer 3

watching a procedure being performed by another individual

Question 4

Inquiry - procedures

Answer 4

asking questions of another knowledgeable party

Question 5

External confirmation - procedures

Answer 5

requesting information from a third party

Question 6

Recalculation - procedures

Answer 6

checking the mathematical accuracy of documents or records

Question 7

Reperformance - procedures

Answer 7

reperforming activities that are performed by the client

Question 8

Analytical procedures - procedures

Answer 8

evaluating information though the analysis of plausible relationships

Question 9

Assertions related to cash and equivalents

Answer 9

existence

Question 10

Assertions related to accounts receivable

Answer 10

existence and valuation

Question 11

Assertions related to Inventory

Answer 11

existence and valuation

Question 12

Assertions related to PPE

Answer 12

existence and valuation

Question 13

Assertions related to Accounts payable

Answer 13

Completeness

Question 14

Assertions related to sales

Answer 14

occurrence, accuracy and cut-off

Question 15

Assertions related to cost of sales

Answer 15

completeness, accuracy and cut-off

Question 16

Assertions related to expenses

Answer 16

completeness, cut-off and accuracy