Summary
Summary Expenditure cycle substantive procedures.
- Course
- Institution
- Book
This document provides a summary of the substantive procedures for each and every assertion affecting the expenditure cycle.
[Show more]
Connected book
Book Title:
Author(s):
- Edition:
- ISBN:
- Edition:
More summaries for
-
Payroll substantive procedures.
-
Revenue cycle substantive procedures.
-
AUI2601 Assignment 1 Semester 1 2023
Seller
Follow
thandoedube
Content preview
Expenditure CycleAssertion Purchases Payable
Occurrence/ Existence Inspect the supporting The auditor should:
documentation (purchase Record the number of the
order, supplier delivery note, last GRN for the year (cut-
GRN and invoice) to confirm: off number)
That the (external) documents Select from the purchase
are made out to the entity and journal, material purchases
are from an approved supplier entered during the last two
All documents are correctly weeks of the year and trace
cross-referenced to each to the relevant GRN and
other. supplier delivery note (via
Each document is signed by the invoice) Inspect these
the designated authority e.g. documents to confirm that
chief buyer, receiving clerk the GRN number is lower
The goods purchased are of a than the cut-off number
type used by the company and that the documents are
inspect the cash payments dated prior to the year-end
records/bank statements to date.
confirm that the goods were Circulate external
appropriately paid for. confirmations to a sample
of both local and foreign
creditors.
Accuracy/Valuation and Confirm the mathematical agree the total of the
allocation. accuracy of the invoice by accrual and creditors
recalculating all extensions control accounts in the
(quantity x price), casts and general ledger to the trial
discounts balance reperform casts of
Agree the quantity of items the creditors control
charged on the invoice, account, and the creditors
against the quantity on the list
goods received note Identify any debit balances
Confirm prices and trade on the creditors list,
discounts used on the invoice establish the reason with
by inspection of the order or the purchases manager and
purchase contract consider whether the
Recalculate VAT, and by balances should be
inspection of the invoice, transferred to debtors
confirm that discounts are Select a sample of creditors
taken into account prior to the (which includes the
calculation of VAT company’s major suppliers)
By inspection, confirm that the from the creditors list and
VAT number and details of the obtain the year-end
supplier as well as the creditors reconciliations
supplier’s VAT number are performed by the creditors
clearly presented on the clerks
supplier tax invoice. Reperform the casts of the
reconciliation
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller thandoedube. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $3.09. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
73918 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now