- August 30, 2021 at 7:09 pm #633558rabihashimMember
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- Replies: 20
I want to ask that if the question does not specify whether to use test of control or substantive procedures and simply tells us to write audit procedures.
I mean in this scenario we can write both test of controls and substantive procedures?August 31, 2021 at 8:03 am #633595
If there are any such questions which do not specify – then possibly – but I think unlikely. If at a final audit – for example – procedures will most likely be substantive (ToCs at an interim audit).
Give me the wording of a past exam requirement (and question reference/name) where you think it does not specify and I’ll tell you whether there are clues to which ones are called for.September 2, 2021 at 9:33 am #633945Noah098Member
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Lily Window Glass D’12
Describe the procedures to be undertaken by the auditor DURING the inventory count of Lily Window Glass Co in order to gain sufficient appropriate audit evidence.
maam here they dont mention whether we are supposed to give TOCs or SPs. So then how do we decide?
and although it may not be latest, I have seen some recent past MCQs just asking fr “appropriate procedures/ audit procedures”, this just confuses me to a great length as to whether am supposed to select options with TOCs/SPs?September 2, 2021 at 10:17 am #633955
“Attendance at physical inventory count” – is a comprehensive procedure in itself – made up lots of separate tests – agree a sample of book to physical (and vice versa), observe the counters/recounters …. you don’t have to categorise whether ToCs or substantive.
For example – it is important at the y/e count to obtain last GRN/GDN numbers – this can’t be categorised – the purpose is for subsequent cut-off testing.September 5, 2021 at 1:26 pm #634460Noah098Member
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trying to get your point…
again if you notice in the July 2020 examiner’s report example 2, they ask for “following procedures….”
they don’t clarify between TOC or SP.
maam where just “procedures” are asked for is there any implicit assumption that they are looking for SP?September 5, 2021 at 5:27 pm #634484
It could be implied by the timing. If the y/e was 31 May 20X5 and the procedures are for the final audit being planned in July, it’s too late to be thinking about whether you want to rely on the effective operation of controls – ToCs should have been carried out during the year at one or more interim visits. This is depicted on page 53 of the notes.September 5, 2021 at 5:29 pm #634485
It could also be implied by the information you are given – if you aren’t told what control activities have been implemented by the client, you can’t devise ToCs to test their operating effectiveness.
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