Procedures on bank balance.
1. Enquire from management how frequent bank reconciliations are done, who performs the rec, and who reviews and authorises it.
2. Observation of the process in relation to the information gathered from management and draw conclusions about the effectiveness of the control.
Are these both test of controls, or only the 2nd point whilst the 1st is a substantive procedure?
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Audit Procs
10y ago#1I think 1 is not any sort of test. It is more documenting the system.
For 2, Not sure exactly what is being observed here in practice.
Ok thanks
The process 2nd point is about the preparations of the bank reconciliation being observed by the audtior,or the ideal procedure for verification would be reperformance.
10y ago#3Yes. Inspect and reperform would be much better tests/procedures.
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