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- This topic has 4 replies, 4 voices, and was last updated 13 years ago by Anonymous.
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- May 31, 2010 at 7:59 am #44289
Hi there,
Who can help me to explain if the question asks the the test procedures, it is desired to write test of control or sub-test? I am totally confused when i reviewed the Dec. 07’s paper. I thought question a should ask about test of control but the answers are all about sub-test,, How to distinguish what the purpose of the questions?
cheers!
June 6, 2010 at 10:54 am #61722Think about whats it asking. If it is the statement of financial position, so inventory,payables,receivables,non currency assets etc, then it would be a substantive test, but if it is a system, like purchases system, then it would be a test of control.
June 6, 2010 at 11:23 am #61723AnonymousInactive- Topics: 6
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Who can help me to explain if the question asks the the test procedures, it is desired to write test of control or sub-test? I am totally confused when i reviewed the Dec. 07’s paper. I thought question a should ask about test of control but the answers are all about sub-test,, How to distinguish what the purpose of the questions?
cheers!
dbuk2000 is correct & i think you are getting it wrong in fact the question 1 of DEC 2007 says”(a) List SIX audit procedures that an auditor would normally carry out on the purchases system at DinZee Co,explaining the reason for each procedure.”
Notice the word system he wants you to test the System of “DinZee Co” (can only be done through test of controls)
Also take a time out and see the answer the procedures mentioned are test of controls 🙂 i.e For the sample of orders above, agree to the inventory
database. (this is a test of control)Purpose of test control – > To confirm that goods received were completely and accurately recorded in the inventory database.
etc etc 🙂
June 6, 2010 at 5:12 pm #61724AnonymousInactive- Topics: 6
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ah i have got a feeling and i am confused right now ..
Now what is written in that answer ? is it TOC’s OR substantive procedures? question 1 part (a) https://www.accaglobal.com/pubs/students/acca/exams/f8/past_papers/int/f8int_2007_dec_a.pdf
November 14, 2010 at 9:22 am #61725AnonymousInactive- Topics: 0
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hi brother..
solved the q my self after goin thru the requirements for Q1 (a)
The question uses the tests of details for accurassy of systems, ending up with substantive testing for recording Liability & Purchase fig’s accurately in the F/S.Heres the catch..
when the question says.. Describe the Audit Procedures..
we can apply TOS’s as well as the substantive procedures..while going through the system accordingly..
e.g.
for a Purchases system as above,Step-1 Identify whether we’ve already tested the system for controls over purchases or not?.
If not yet tested..Step-2 test accurassy all the recording systems of all systems from
Requisition-Order receipt………….right to Reciept of goods, followed by
Step-3 Invoicing & recording + accounting for the respective Expenses, Accruals and Liability.
(HOPE THSI HELPS U OUT) - AuthorPosts
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