- This topic has 3 replies, 2 voices, and was last updated 10 months ago by
Kim Smith.
Kim Smith.-
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Noah098
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Maam can we write the following substantive procedures in respect of Purchases and other expense:
– discuss what management their process for identifying GRNI and assess its reisaiblenness.
-inspect post-yr end invoices, that relate to goods received pre yr end, and confirm its inclusion in the Purchase daybook.I am just slightly confused here, cause i have seen these procedures in TPs, but i don’t know if they can overlap with purchases too!
maam it will be of a lot of help if you could even briefly state whether they can be included in purchases and other expenses’ SPs.
Kim Smith
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See the response to your other post of today about the assertions for transactions and balances not being the same.
However, where they are the same, yes it will be true (must be true!) that a test for completeness of payables must also test purchases for completeness.
Noah098
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ok got it maam! so here since the assertion is same i.e. completeness- both the procedures are valid for purchases and trade payables, right?
Maam i know we are not allowed to ask such kind of questions, but if you could just answer with a yes/no also then even that will be great!
Many thanks as always:)
Kim Smith
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Yes – this must in essence be true if you are talking about the “opposite side” of the entry. So if the recording of credit sales transactions is complete, the recording of trade receivables must also be complete with regards to the recording of credit sales in trade receivables.
Noah098
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