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Hey so I am panicking about substantive procedures.
My main problem is just thinking of all these many things you have to do to check for each thing. Is there any easy way to remember these? I don’t usually rely on cramming and prefer to know the logic of how to get to an answer and then write it down but for this one thing I just can not find a way of thinking of the answer.
So is there any line of logic you’ll give me to follow? Any way to remember these things easier? I know AEIOU but I still cant remember what to write. I’ve been going through the kit and this is really worrying me.
Also then, as per the title, in what lecture have you covered substantive procedures?
Try using the Assertions to generate ideas. So, to verify existence, inspect an asset. To verify valuation, perhaps reperform calculations, or inspect invoices to verify purchase price.
Chapter 17 onwards looks at the audit procedures for major classes of assets and liabilities. Try to remember some from each then practising questions will let you see that there is quite a lot of repetition.
I have just started watching these lectures and find them very helpful. Thank you! 🙂
2 questions
A) When you take a receivable balance and trace it back to the original order, what are we testing? Completeness or existence?
Similarly,
B) when we take an order and trace it up to the receivable, what are we testing?If I had to try to answer, then I would say in part A we are testing existence and it part B we are testing completeness. Is this correct?
A Existence. The original order supports the idea that this is a legitimate order. You cannot trace back an item from the receivables ledger if it is no in the receivables ledger so that cannot test completeness.
B Completeness: have all orders become sales and receivables?
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