Substantive Procedures for Redundancy Costs Flashcards
Review board minutes…
Review board minutes for evidence of the decision to discontinue the brand of chemicals prior to year-end
Review supporting documentation…
Review supporting documentation to confirm that the decision to discontinue the brand was notified to four members of staff prior to year end
Obtain details…
Obtain details of redundancy caclulated by employee, cost the schedule and agree to trial balance/FSs
Recalculate redundancy provision…
Recalculate redundancy provision to confirm completeness and agree components of the cost to supporting documentation such as employee contracts
Agree the redundancy payments…
Agree the redundancy payments made in July 20X5 to the cash book/payroll records and compare these to the provision in the FSs
Obtain a written representation…
Obtain a written representation from management confirming the completeness of costs
Review the disclosures…
Review disclosures included in FSs to verify they are in compliance with requirements of IAS 37
