Other Audit Procedures (1)

Question 1

Best way to generate a wide range of audit procedures relating to receivables step 1 (key risks)

Answer 1

Consider the key risks associated with the item/balance

Question 2

Best way to generate a wide range of audit procedures relating to receivables step 2 (principal assertions)

Answer 2

Identify the principal assertions that we need evidence over

Question 3

Best way to generate a wide range of audit procedures relating to receivables step 3 (remember AEIOU)

Answer 3

Remember AEIOU to find ways to describe your audit procedures

Question 4

What is reviewing after-date cash receipts an excellent test for?

Answer 4

Valuation and existence

Question 5

What does comparing gross profit per product line with the previous year tests for?

Answer 5

The existence and completeness of receivables

Question 6

Receivables breakdown receivables level trade receivables (completeness)

Answer 6

Obtain a breakdown of trade receivables figure per customer for both the current and the previous period and compare level of trade receivables year on year

Question 7

Receivables GDN sales invoice nominal (completeness)

Answer 7

Select a sample of GDNs issued during the year and bvouch them to relevatn sales invoice. Inspect revenue and receivables accounts in nominal ledger to ensure invoice has been accurately recorded in accounting period

Question 8

Receivables aged receivables nominal ledger (completeness)

Answer 8

Obtain aged receivables listing, recast total to ensure it is accurate. Agree balance on aged receivables listing to nominal ledger and trace through FSs ensuring all balances are recorded