audit procedures

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  • Avatar of Vipin
    Vipin
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    One of the audit procedure is:

    Compare trade payables individually to prior year balance.

    what is the purpose of this procedure?

    another procedure is
    compare trade payables in total to prior year balances .

    what is the purpose of this audit procedure?


    Avatar of gromit
    gromit
    Keymaster
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    This would be a form of analytical procedure. If the business is fairly stable you might expect total payables at the end of each year to be roughly similar. If they differ a lot then you would look into it in case the differences was caused by an error.

    Looking at individual balance comparison would be less successful as individual purchases and balances will go up and down. However, there might be some validity in looking at the balances owed to major suppliers as these are likely to be more stable.


    Avatar of Vipin
    Vipin
    Participant
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    for a sample of supplier invoices, cast and cross cast invoice price and quantities confirming price to the original order.

    what do they mean by cast and cross cast?


    Avatar of gromit
    gromit
    Keymaster
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    Cast = add up
    Cross cast = add across

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