- This topic has 5 replies, 2 voices, and was last updated 2 years ago by
.
- Posts
Hi,
Perhaps an unusual question, but I will try to give it a go.
English is not my first language and I wanted to ask could you please explain what does casting mean in audit.For example there is this question in BPP 107 Chuck example – provide substantive procedures for payroll costs to check completeness an accuracy. And one of the answers is “cast a sample of payroll records to confirm completeness and accuracy of the payroll expense”.
What could that mean in practice or in other words?Definition in google just says that casting means summing up a column. But I don’t see how that could give assurance over completeness and accuracy if we sum up a sample. Sum up and agree to what?
ACCA also suggests to use audit terminology in the exam like “cast”, “agree”, “trace” etc. when giving answers but I am having little trouble with the meaning of casting.
Kind regards,
LauraWelcome to my forum!
See here https://opentuition.com/topic/substantive-procedure-verb-cast
It doesn’t mean total the sample to one figure. It’s saying for each item in the sample … in this case payrolls…. check its arithmetic accuracy by adding it up.
Bit of confusion still about casting term.
What would that mean in practice – to check arithmetic for each sampled item?
Lets say we have a list of payroll costs at year end:
1000 Employee A
2000 Employee B
3500 Employee C
4500 Employee D
8000 Employee E
19000 TOTALAnd I have sampled item 4500 and 2000.
So checking arithmetic would mean that I recalculate each sampled item e.g from gross to net pay?
From this example I can add up sampled items which does not do much or add up the whole population and check if its actually 19k.
If casting would mean that we sum up all column then what is needed to be done with the sample?In the same example there is a similar question – give substantive procedures over redundancy provision. And the answer is “obtain an analysis of the redundancy calculations (cost by employee) and cast it to ensure completeness. ”
So I just sum up all items in the list of redundancy costs and say costs are complete? Or do I reperform calculations for each item? But can I say that redundancy costs are complete by reperforming and checking arithmetic for each item?.It is the weekly/monthly payrolls that are being sampled not the employees that make up each payroll. So for the August payroll for factory employees you are checking the sum of all payments.
- The topic ‘Casting’ is closed to new replies.