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cast the payables ledger to ensure its accuracy
sir i am really confuse with the word cast
what does this mean?
please explainIt means ‘add up’. Many areas of auditing require ledgers and lists to be tested/calculations reperformed by adding them up. For example, that the total of inventory is the total of the amounts on the count sheets (‘cast the values of inventory as recorded on the inventory sheets and trace to the financial statements’.
hi there i am having problems in giving examples of substantive tests and tests of control to perform i know u must use the financial statements assertion to develop them can u provide some guidance
Substantive tests consist of: analytical procedures, enquiry and confirmation, inspection, observation, recalculation and reperformance.
Tests of control include all of the above except analytical procedures.
The actual tests can be many and varied. To ensure a control is carried you could observe it happening (eg counting goods as they are received), inspect documentation for authorisation, etc. To test an assertion such as existence you can use inspection; ownership can also use this eg inspect a document of title. Ownership of receivables can use confirmation from customers.
What’s appropriate depends on the client.
The best you can do is to look at past questions and answers and see what’s suggested there.
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