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Kim Smith.
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Noah098
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Discuss with management their procedures for ensuring advance ticket sales for the September 20X5 festival are excluded from income and instead recognised as deferred income in the statement of financial position.
maam how is this a SP? its not directly checking the specific amount. so is it like a dual purpose test maam?
Kim Smith
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You have posted similar, I’m sure, where I say it cannot be TOC (it gives no “yes/no” answer to whether a specified control has operated effectively) – but I agree it is not a substantive procedure. I would say it is a risk assessment procedure/obtaining an understanding that might introduce an answer.
A bit like when an answer starts “obtain a schedule ….” it gives you something to work with – but per se you don’t have any audit evidence until you’ve done something with it.
Noah098
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