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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AA Exams › Non routine transactions
Hello gromit
please explain how to deal with non routine transactions when defining controls and test of controls for both debit and credit notes in purchases and sales cycle
thanks
Non-routine transactions (eg perhaps sales of old non-current assets) probably have no controls, or else poor controls. However, they are (by definition) low volume so can be subjected to substantive testing fairly easily.
Debit and credit notes would probably not be classified as non-routine and should have good controls (after all, issuing a credit note is just like letting someone not pay). However, if these are rare and there are no controls, the notes (or a large proportion of them by value) need to be inspected during the audit to ensure they are backed up by documentation.
thanks