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- October 16, 2012 at 7:53 am #54718
part of exam qn:
You are the external auditor of Tracey Transporters, a public limited company(TT).Bookings for hire of vehicles are received either over the telephone or via email in TT’s offices.
if customer’s credit rating is acceptable and a vehicle is available, the booking is enetered into the VMS(Vechicle Management System).
Booking information is then transferred to receivables ledger program, where a sales invoice is raised.audit procedure :
1)For a sample of bookings in VMS, trace details to the list of sales invoices raised maintained in the receivable ledger program.2)For a sample of sales invoices in receivable legder , trace details to bookings in VMS.
procedure 1, is listed in answer sheet by examiner.
its purpose is to confirm completeness.procedure 2, is not listed by examiner.
my doubt is , is that a valid prodecure?
in the case of inventory, a similar procedure confirms existence.
here, if i write this procedure , will i get marks?
if right, what reason i should give for this procedure.thanks.
October 16, 2012 at 4:04 pm #105609It is valid. It checks occurrence ie that there was a valid booking.
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