Substantive Testing

Question 1

Major Audit Procedures
1. RAP
2. FAP

What are the procedures under FAP?

Answer 1

TOC and ST

Question 2

RAP, TOC, ST
- IOI

Answer 2

pwede sa tatlo

Question 3

RAP, TOC, ST
- Confirmation

Answer 3

ST lang

Question 4

RAP, TOC, ST
- Recalculation

Answer 4

ST lang

Question 5

RAP, TOC, ST
- Reperformance

Answer 5

TOC (IOI Reperformance)

Question 6

RAP, TOC, ST
- Analytical Procedures

Answer 6

• RAP (IOI Analytical)
• ST

analytical procedures is NOT required in ST

Question 7

Positive Confirmation or Negative Confirmation
- silence means yes

Answer 7

Negative Confirmation
- Positive Confirmation → must reply

Question 8

Positive Confirmation or Negative Confirmation
- strong internal control

Answer 8

Negative Confirmation (since silence means yes, parang kahit di magreply okay lang since maganda naman internal control)
- Positive Confirmation → weak internal control

Question 9

Positive Confirmation or Negative Confirmation
- info is only available outside

Answer 9

Positive Confirmation
- Negative Confirmation → within and outside

Question 10

Positive Confirmation or Negative Confirmation
- items are few but large amounts (e.g. PPE)

Answer 10

Positive Confirmation
- Negative Confirmation → numerous yet small amounts (e.g. inventory)

Question 11

Since confirmation is an audit procedure, the auditor prepares/signs the confirmation request. True or False?

Answer 11

False
- Management → prepare / sign confirmation request
- Auditor → control sending of the request

If management refused → see alternative procedures

Question 12

Direction of Testing (OVER CUTS)

Answer 12

• Vouching → overstatement, existence , records first
• Tracing → understatement, completeness, source first