Page 28 - eBook Audit Of Financial Statement Components

Key Control Audit Procedures Audit
Features Assertions

3. Goods - Check goods received notes to Occurrence
inwards and purchase orders and copy of Measurement
return of suppliers’ delivery notes Completeness
goods
- Ensure indication of check for Valuation
quantity and quality of goods
received

- Check that good returned to
supplier are documented
- Ascertain basic of valuation of
inventories

4. Invoices and - Match suppliers’ invoices to Right/Obligation
credit notes purchase orders and goods
from supplier received notes. Measurement

- Ensure invoices are cross-
referenced to purchase orders and

goods received notes
- Check prices, arithmetical
accuracy and other terms of
purchase
- Ensure that credit notes received
are matched to the corresponding
return of goods
- Ascertain system of control over
suppliers’ invoices
5. Payment - Ensure all supporting documents Existence
are attached and checked for Occurrence
arithmetical accuracy
- Ensure proper approvals are given

- Check that discounts or credits
given have been received and
netted off against the payments

6. Reconciliation - Ensure suppliers’ statements are Completeness
Of Statements reconciled regularly
- Review reconciliation and ensure
long outstanding item are resolved
7. Posting to - Check posting to inventory, Measurement
ledgers creditors subsidiary and general Completeness
ledger accounts
- Check reconciliation of creditors’
subsidiary and control accounts

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