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From a scenario,if it just request audit procedure, we can write both test of control and substantive procedure?? Can you briefly explain and give me en example of the toc and sp for a purchase system?
Usually the scenario will specify which sort of procedures it wants, particularly if it wants ToC.
ToC: ascertain that:
purchase orders approved
goods counted when received
suppliers’ statements reconciled to ledger regularlySubstantive tests:
Inspect invoices to ensure they have been allocated to the correct expense account
Trace invoices from invoice file to ledger and vice versa
Trace payments from/to cash book and to/from payables ledger
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