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In substantive procedures do we have to explain the objective of the procedures or just mention the procedures?
E.g
Obtain a photocopy of the completed inventory sheets
OR
Obtain photocopies of the inventory count sheets at the end of the
inventory count, ready for checking against the final
inventory listing at the final audit:DOUBT- From the above mentioned procedure how should i present my procedures
Please read an AA examiner’s report – any AA examiner’s report – these are written for YOUR benefit. For example, from the M/J21 report available here https://www.accaglobal.com/ie/en/student/exam-support-resources/fundamentals-exams-study-resources/f8/examiners-reports1.html
“When describing substantive procedures one of the key things to consider is the
level of detail provided. Many candidates fail to score well in this type of requirement
because their procedures are vague or too brief. Tests must be sufficiently detailed
noting clearly which source document should be used. For example, in this session
many candidates included, ‘agree to cash book and bank statements’ without
specifying that this was being done to agree the net pay or statutory deductions. Also
‘recalculate gross to net pay for a sample of employees’ would only gain ½ mark as it
needs to be agreed back to the underlying payroll records to ensure payroll is
accurate.”You will find similar examples in any report.
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