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Here is the link to Dec 2007 Question 1 Part (a)
https://www.accaglobal.com/pubs/students/acca/exams/f8/past_papers/int/f8int_2007_dec_q.pdf
The requirement is asking to list audit procedures on the purchase system..
i thought when the requirement says system they actually want us to write Test of controls but if you notice the answer of this question on this link https://www.accaglobal.com/pubs/students/acca/exams/f8/past_papers/int/f8int_2007_dec_a.pdf the answer seems to me as if ACCA has written Substantive procedures 🙁
Do you think they wrote substantive procedures in that answer or are they TOC ?
If the answer of Dec 2007 question 1 part (a) are substantive procedures then saying that the word “System” in any question refers to a TOC is wrong thinking ?
Then how are we suppose to differentiate in exams whether they are asking us to write TOC or Substantive procedures ? 🙁any help would be highly appreciated!
This question has really thrown me out!
The purchases system is how the system works from orders to receipt, to invoice to payment.
You would face a problem in this question if you tried to describe ToCs, because there are very few controls described. You can’t invent them here. For example, no one seems to sign anything or to go through files looking for long-unmatched items. There is a bit of checking by clerks and that could be observed.
So, audit procedures to be performed on an accounting system could mean substantive if there are no controls. It could mean ToC if there were controls.
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