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Dear lecturer,
I would like to ask you a question. In the exam, if a question requires us to write an audit procedure, do we have to write about the test of control or substantive procedure or control activity ?
Overall, I am not sure with the word “audit procedure”. Does the the word ” audit procedure” refer to the test of control or substantive procedure or control activity ?Audit procedure is anything the auditor does as part of the audit. For example, observe the stock take, perform a receivables circularisation, inspecting documents to ensure they were properly authorised.
So, the phrase covers both substantive tests and tests of control. However, to carry out procedures on toc, you would normally expect to have had the control system described in the question.
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