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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AA Exams › Inventory count
Inspect some of invoices and confirm if they are sequentially numbered
And if the are flagged up?
Can this be a substantive procedure or these are TOC?
A substantive procedure is concerned with monetary amounts ($) and provides direct evidence that amounts are correct.
Monetary amounts are irrelevant to a test of control – for each item tested there are only two outcomes – either the control was applied – or it was not.
So even if you did not know that sequence checking any documentation is a control to help ensure completeness (Chapter 14 – application control) – reperformance of a sequence check must be a test of control – the monetary amounts of the invoices are irrelevant.