- This topic has 1 reply, 2 voices, and was last updated 13 years ago by
.
-
Posts
-
Parts inventory is monitored by the stores manager. when the quantity of a particular part falls below re-order level, an email is sent to the procurement department detailing the parts required and the quantity to order. A copy of email is filed on the store manager’s computer.
audit procedure
obtain sample of e-mails from the store manager’s computer and trace details to the order databse.
(order database is maintained by procurement dept)reason for procedure
ensure that all orders are recorded and that the order details are correct.this looks like a test of control to me, in my opinion it should not be classified as a substantive audit procedure, as it only ensures that prescribed procedure is followed or not.
f8 is little hard to me. thanks for ur help.
But, no control has been carried out. All that’s happened is that an email has been sent and used to update the order database.
A control would be, for example, where every week the stores manager counts up the emails sent and ensures that the same number of new orders have been issued.
- You must be logged in to reply to this topic.