Documents used for Substantive Procedures Flashcards
Receivables? (aged)
Aged receivables - slow moving balances
Receivables? (GDN - confirm shipped)
Goods despatched notes - confirms goods have been shipped to customer
Bank loan (lain documentation amount borrowed)
Loan documentation to confirm amount borrowed
How to compare amounts?
Documents
Ledger accounts AND/OR bank statements
Bank loan (con)
Bank confirmation letter to confirm outstanding balance
Bank loan (agreement covenant details)
Loan agreement for covenant details
Additions plant and equipment (supplier invoices valuation and rights)
Supplier invoices used for valuation and rights & obligations
Additions plant and equipment (non-current reg existence)
Non-current asset register used to confirm existence
Bank balances (bank rec additions arithmetic accuracy)
Bank reconciliation to check additions for arithmetical accuracy
Compare amonuts in the bank?
Using a bank statement AND cash book/bank ledger
Bank balances (lodg)
Lodgments - deposits/money received by a business but not received on bank statement
Legal claim (corr)
Correspondence between third parties
Payables (inv)
Purchase invoices received - use GRN to confirm timeframe
Payables (Goods timeframe)
Goods received note - used to confirm correct timeframe
Legal claims (bank statements payment made)
Post-year-end bank statements to determine whether payments been amde
Revenue (ss individual comparison prior)
Schedule of sales - used to determine sales of individual product lines and comparison to prior years
Revenue (inv agree master data)
Sales invoices - agreed back to a price list or customer master data information
Revenue (Goods)
Goods despatched notes - compared to sales invoice to confirm cut-off
Revenue (credit notes removed)
Credit notes - if found need to be removed from revenue
Revenue (gross)
Gross profit margin
Inventory (instr)
Count instriuctiuns - used to verify accuracy of count
Inventory (sequentially audit tests)
Sequentially numbered inventory sheets - for testing final audit
Inventory (goods)
GDNs and GRNs - to confirm cut-offs
Share capital (legal documentation share)
Legal documentation and share issue
Land and buildings (non)
Non-current asset register
Receivables (post receipts)
Post-year-end receipts - used to establish the amount of debt recovered
Provision (breakdown correct calculation)
Breakdown of restructuring provision - ensure correct calculation
Provision (ann)
Announcement - confirms when announcement was
Provision (post payments provision reasonable)
Post-year-end payments - determines whether provision is reasonable