Note Title D | v Substantive procedures - Purchases COCA - cr Co top Wares Ocean Ute Acenran igi20i6 J Corep tshenes Ss Tost Purchace 5 [Sib pe coveted ? fran saxtions o cummed ¥ wh geds fom Splees ova _rteaead ¥ Gv > SeRpw purebene Bxxy Ugo C—_ -) Souvia do unots T evidence tak SMppres dowmmts i, purdele trontacten hes 2 cored Cory Uteuse Text owt foo Sour far to UdewSug pler tren cetms (1) p.o — GIN ee 3 alee is pesos = couplite @ Po > GRN > pple 5 2 transootar & mvole mot reandad Finca nap late. (5 po > GRee > 9 = tenvecoedsd fransachers + mcmplcle Dr pardans tw Accrual token invoice Came later » Acetuol TO pro tle ® pro > GRMN > Accrual 5 reed = Cpl Completeness, Source > dger oO @ - Select a sample of,purchase orders and agree these to the goods received notes and supplier invoices ces through to inclusion in the purchases edger to ensure completenessiof.recordingiofpurchases, If there are no Zo supplier invoices, epsure the transactions are recorded in purchaseyaccrual>> Assefien Suppl PD > GRM > wae 9 UdgerO Cearrene 9D Rew ded rontotieons ae veal 5 they Lave occurred , thes Oven ast fect hou 3 J O Ceurvene eet ~> Ledge —> Source, pertlent User —> spp’ Gaal 5 po T tyansettions oe 5 Ke hey reel? Veuw ded Occurrence © Select a sample of purchases recorded.in purchaselledger and agree details to sti tas and i § srdgumkSaaia to ensure qoodsthavesbeenseceived. ic the purchose. ans CORE hee octurved_.Co) on oa I cpp ene (2) corer pre / 4% my > vale \ @__ Correr aie t 4 (3) No calunlobes chesle ct Qo Raocel wmlae two vole2 wtf tects Cort off Test | pre_ yt Yle pow JE hentia ( 42N (4 | oe cured 3 ws d L v Sg Ite Sa) | [Stee | st yansoctuna trancackore ae ove pel dad | ev [ete | eed fe eI Jle Correct cutoff (ut off Cre Vurehose wud Ten 2 pee le Me pet se G 6 coarrsd [ant] seersCalf ewer Cree wha ~~ Cutoff wey ae Select a Saniple(OflGooustreceived notes boti(pre)and post the follow these through to SUppli€rinVvoices in the id to ensure that GUt6ff has been Correctly applied. =Compare @FOSSIMAarGINItG the prior year’s gross margin and investigate any significant fluctuations. a Cale Spenirg wreck tL pwtibe — C04 «& C4 pertlees YF — close Hotle “ E1055 prof k = C04 D> antt ke wil be Under oted overt ated> nb Substantive procedures - sale Completeness Sourle. —9 Ladger” 3 i (2 - Select imple of cl and agree these to the @@Spatehinotes | and s s through to inclusion in th to ensure ‘completeness of recording of revenue. OnHone” py > Sebo _5 Seles or day ie es N Peverces ° Gazer ( Seluy ardor > Occurrence Lede o > Seurue ® - _ Select a sample of sale recorded isan goat 2 agree details to sale | (invoices and ani 5 to ensure goodsthave — been delivered to valid customers and thus revenue is earned, +e the Celt Honeortiens hove occurred. Sdn selon sy GBN Sok bela” (edge Tavolces Gpn of) ©) Rencal eloli © vo beatinSoles antof{ ter | pra le jit pew gle Pala ne Gon J coe | sale | {dev ore trav ote J L Wgey [es ~\ Vv Covvect ato Cntel ere Gols _ Sealer _| Cro evo L \ ledger b Crvect tollie Cutoff = Select a sample of despatch notes» oth(prey these through to sales invoices in the rere? that cut-off has been correctly applied. _— oh} ted Gostythe year end, follow cay umiting period to ensure Jun Astl Qld pro pec wit Ak pulparen hei Peer) t > Q he = check tle additer Agree to Uleck cord, tree choet ( Ao to al Py (3) Selec a Samplevofiemployees, receeulate Oo ano accuracycans ote epee A CHinded pogrer! lwp 2. Perform a proofeinetotal of wages and salary, incorporating joiners, leavers and pay = adjustment. Compare this to the recorded wages and salaries and investigate significant differences — No. % iad how! A bea mnis + Jomew — Gaver =} \ a he pred Selo ot 4 + + pes) = B&B bagnnnd sacra: —) he pore d & X R > Cer mot pagrell expense. [nvest go sepnif teanet ciffemeesee ott QIb pb Dec wie Q2a pus (ii) (Pefne a ‘substantive procedure arvie @i ‘peample of a substantive procedure in relation to the = audit of wages and salaries.” _ 1 Pp a (3) Select a Samplejofiemployees, recalculate the arms endef Sari accuracy Tun 2214 Qle psepreg iT Audit procedures on Accrual for income tax payable on employment _ Petey Eaeng Eero 5 Peering 008 | 005 006 | 007 | L240 = Dr powell evpate 2, UKo ) a pay +t auehohy wan Trebr tee, Wey SEP Ww Cash 190 hf te ye dv page te autherhy Ab Ww Cask ey Jen w+ Qi d ps Direct Bonms | —_ how ? b YR 8 ¥e Detaiua c *F erect xy Boor ayyene| Enpleymer = forgeJun oe Qc pS2 Alc Bal one — SEP Thems CR eR CT Comp Letaness Right: oma Obligeha. = otbnershp Ext thence A ccurou, , yebwhear ong ellouherPi Substantive procedures over year-end trade payables / -—— nitialpprowedures nsw the pegatle Its Comp lle ond payeb ak yt a een + Cowes 2 A loole pen B rook puaclee Cc Brvle Gage > 4ovle au - bao gle ~ pogetle, Awa Sapfliov [pagel Client ~eppliey [toy if \ ( \ QD Aner dent \ ND Sands iw Comfrvnators J < rutin Letter wd to pestle ( ) Feder J Copies YE RBelenee Q_ Procter rep diwirly be adi a Cpe Crret by tf ke balnus ave ThA payedis > thee proides idane OW(6) Existence (4) re curoeg wvalraton, allocelen the enrt *S lereey © Reh ad oblate 5 the ondh Uiet ha olligeten to pay (a) Complitaness = ofl the ammunts ened totes repplien ove Head Dudley Namtainc corpo! wey The process UU) Audit seleet Sarg les @) ml he lettos awe neal (2) Regumt reply Yo he amt diraitley Disedvodeye > No reply Select a Samplelof payable balances and perform a pail trade payables’ circularisation, and \ Replied L Replied No reply Wawprmad ce balence Bday segv . 5 dD. ASE ane Fret ont why Clint Lor D> [nvewtrgee help > beeonc 1758 tfems cae ee (& cash i fensit 3. Stil wo 0 , repli () trveice om fensite ; : frocduncs W Agra whe ve poole pagent moots tht YP wake ple Ue Caah book flemle (a> cect ement Uy purelade fontockon ocurvante Tet Agrse the onttrodig poyetle ot Yle to Supplier inmvouts, GRN and p-oPayable Circularisation Reconciliation Audit procedures Balance per conffitmationreply (S160}000 | (1) Agree to confirmation reply Less: Gasheinetransit ($40,000) | (4) Agree to pre year end cash book and post year end bank statement Less: invoice-in-transit ($20,000) | (5) Agree to post-year end GRN and ensure it is included in accrual Balance per purchaselledget 991001000 | (2) Agree to purchase ledger 8) Cast the reconciliation Cosh om fransié Paxment Sent bry and Client before ye Dv payable ow Cash But te Suppluy recov A afta yt Hort dogo antty Enor thes is tue ? Inspelt pre ye cath book xy. Bi Mew weth pest WE Boke Selment 2 Jan veil (nvorw In transit The Suppliny veenrded the tnvole befwe yle But the air Chet recoraad the moe often YEkey tssue 9 ShoWd thes invoie be reavesd bone yle GRN de Tt ia c invore doh Loy \e = ond clowk tf pew yl > ant ‘ ve : Clots paryehle Te sefre 1S weet ASRSERIGRNGHE se ows Fut owe” ensure it is included in accrual K rrSearch for unrecorded payable —7 bo ~p (che ness Ga Review after date payments, if they relate to the current year then follow __ through to the purchase ledger or accrual listing to ensure completeness. ye ofa lt Payment 7 Has % been aa \ Verovded 09 Y | pagette oF ye? MV ONE ys Z Noe Z ~ ok befere gle Ate ME beeps drlete — Ponte(1) Review outstanding invoices in the purchase ledger greater than three months old and enquire of management whether they are Walid) outctanding liabilities b Exictene, (3) Review bank statements for payments made after the year end to identify those payments relating to pre year-end liabilities =, Go uplteness yl gle pos se — P ney ment posse SD pornent NO Ge Menee (4) Select a sample of invoices in the purchaselledgeriatithelyear end and agree payments made to bank statements post year end bec 2012 Qu k p3y () Trade payables and accnals Rose's finance director has notified you that an error occurred in the closing of the purchase ledger at the year end. Rather than it closing on 1. November, it @identaly closedlone Week earlenon!25/Oclobet All ————-—anes e BANEE 25TOHGBE ar tear have been poste OMNEOISea-end purchase ledger. Gurbef (6matls) underit oy 20/2 purbote/ panetle, Ruder Comeetion QO Normal posable. Ist: Mb amhwe prottites Lover tht ome 1. Mralytiel prom 2g Journal evn Dd. Sele Gample — arf masher= Parse supp hor tmunttva 2 puertlee cba] Kast ketieon 2 oct to Wor bh we TE Yo New = reply ~> L alterratwe pwoduris Sse ansrer piedpo CR ef) Pr Substantive procedures to confirm receivables balance : Acceran, velmebion , allocben => prvsios for bed oletd Ta sul cee fun =? Rew we Jf teteot pr over y clued Receivelle trh/neber =) does at prude Sof fretoet mdene om "~ Kewvaw, vahahen ovel allowhen' — asserfin «investigate any/recontiling items such as cashinitranisit between balance confirmed and trade receivables’ balance. SS ROOMOTRDYY = cites prnatrn - ylt ae gle a recevale —> 5 Review cash received from debtors a ater year en and a o Agree details to valid supporting documentation of Goods Despatch Note (delivery notes) and sales orders to ensure existence. aSubsequent receipt = Conpltoresc eet - Review the ater ike veh reat and follow through to pre-year-end receivable balances. yt Ahn HE Recorded ur Cash recawed N vg cenvesie ? Lb Z My Thvole fer ws 1 ct DK eee befve YIt lomplateAllowance for bad debt - Inspect the agedireceiVabIESireport to identify any SIOWIMOViNGlbalances, discuss these with the credit control manager to assess/whether an allowance or write down is necessary. long Grovcliue helante - For any slow maving/aged halances review dlistamentearrespandetice ta assess whether there are any invoicesiinidispute) - Review boardyminutes|to assess whether there are any material disputed receivables. 7 2) Step ¢ (1) Jolentihy potential had olekt ® Aging rept — old delet © Copepord ance — Aicprted CO Bod minutes — Lop wid @) Dis uss wth pagrt to assess rhe (wel 4 aflowere needed eee o! OW Reman a0 Bec w/a BY psy ~—reveivables balance is row material. The audit senior has undertaken a receivables citcuarisation for the balances atthe year end; however, there areamnumberwhothavenotresponded and a numbenofresponses | No raply o Review cash received from debtors after year end; and o Agree details to valid supporting documentation of Goods Despatch — Note (delivery notes) and sales orders to ensure existence,Response wh duffermua Taver Gels reconcilig ‘ems = Cach wn tremett = twole ik ten disputed voile $20,000 | (5) Agree to(BFERVBRRBNEIGDNIATA sales invoice $10,000 | (6) Discuss with management to $40,000 | (4) Aere toposRVeareneSEHBGK and bank statement — assesslevelofallowancetaddebt required abec 2 GIA CID pw ee ee M No prwsinn Ly bed Leb} Step § > )okent ity peteta! okt T= ASrRR reper = beter > Atpoted — Board minnhes - olsputed Hep 2 9 Alsace te dh prrerinn pec we MeOQaY p67 ~4 Which TWO of the following substantive procedures provide evidence over the EXISTENCE of trade receivables? DK) Aareeing a sample of goods despatched notes to sales Invoioes and tothe SAEs edger. <> Co wepltenses (2) Undertaking a receivables cirularsation Eyastence } Saler ~~» (3) Review of post year-end cash receipts, if these relate to year-end receivables follow through to the sales ledger (4) Recalculating the allowance for uncollectible accounts => eure, ve owt s fp A-tad3 a ocker assertion C 2and3 A, lorpletaress a (2 marks)