Listed below are 15 substantive procedures:

1. Perform a debtors’ circularisation.

2. Review all invoices received for one month after year-end to ensure they do not relate to the current year.

3. Ensure there is an appropriate split between current and non-current liabilities in the leasing note to the financial statements.

4. Attend year-end stock count and perform test counts on a sample of stock items.

5. Send a letter to the bank to confirm a loan taken out by the company during the year.
6. Ensure interest paid on the bank loan is correct by multiplying the interest rate by the outstanding principal for each month of the year.
7. Review a sample of repairs and maintenance expenditure for the year to ensure that it does not include any items that are capital in nature.
8. Arrange for an independent expert to perform a valuation of the land held by the company.
9. Obtain the company’s depreciation rates from the financial statements and check to ensure they have been applied correctly.
10. Review the adequacy of the company’s provision for doubtful debts.
11.Trace the last stock items received before year-end to the stock listing.
12. Review the company-prepared bank reconciliation.
13.Select a sample of invoices and ensure they have been properly recorded in the sales ledger.
14. Review the profit and loss statement for unusual differences in the balances recorded for this year and last year.
15.Select a sample of fixed assets and sight them.

Required

(a) For each test, indicate what type of substantive procedure it relates to (analytical review, tests of details of balances or tests of details of transactions).

(b) What is one assertion to which each test relates?