Determine the sampling method and justification for each substantive procedure.

#	Substantive Procedures	Sampling method	Justification
1	Bank confirmations: Obtain bank confirmations for all accounts including the accounts closed during the year, to confirm the relationship with the bank, including contingencies, liens, pledges, restrictions on the client's assets, guaranteed amounts, etc.	Random selection	Each of
2	Analytical review: Compare the aged listing of cash with those of prior periods and investigate any unexpected changes (e.g., credit balances, unusual large balances, new accounts, closed accounts) or the absence of expected changes.	Judgemental selection	This involves testing any item with unexpected changes.
3	Bank reconciliations: Examine the client's bank reconciliation as of yearend, including cash-in-transit accounts, to verify the proper reconciliation of bank statements and general ledger accounts. (a) Trace the bank balance to the confirmation. (b) Trace the book balance to the general ledger. (c) Test the mathematical accuracy of the reconciliation. (d) For those amounts greater than 60 percent of PM, test deposits in transit and selected outstanding cheques by tracing from the bank reconciliations to the cut-off bank statement (or subsequent month's bank statement) and vice versa. (e) Review the nature and extent of other reconciling items for reasonableness and investigate any large (>60 percent of PM) or unusual reconciling items.	Random selection	As each of the general ledger accounts has an equal chance to be chosen to resent the population.
4	Cash cut-off: Test cut-off of cash receipts and cash disbursements for transfers between different bank accounts at the balance sheet date. (a) Obtain or prepare a schedule of bank transfers made in the five days before and after year-end. For those greater than 60 percent of PM, trace to the bank statements.	Block selection	This involves bank transactions made in the five days before and after year-end
5	Agreement of sub-ledger with general ledger: Agreed receivables sub-ledger to the general ledger and investigate large (> 60% PM) and unusual reconciling items.	Judgemental selection	This relates to the consideration that which customers are most likely overdue inappropriate.
6	Analytical review: Compare the aged listing of accounts receivable with those of prior periods and note any significant changes (e.g., changes in major customers, in major customers balances in the percentage of overdue accounts, in the proportion of credit balances). Obtain explanations for unexpected changes.
7	Confirmations and subsequent cash receipts: Verify the existence of trade accounts receivable through confirmation or subsequent cash receipts or a combination of those procedures. (a) Select customer account balances greater than 60% PM to prepare and send positive confirmations of year-end balances. (b) For confirmation requests for which no reply is received, vouch for customer account balance through cash receipts received after year-end. If amounts still remain untested, then vouch to the supporting invoice and shipping document.
8	Accounts receivable cut-off: Inspect sales register, billings, shipping documents and other supporting documents 5 days before and 5 days after the year-end date. Select those transactions greater than 60% PM and verify that the sales were recorded in the proper period.	Block selection	This involves picking a certain period to determine if the testing samples are included.
9	Analytical review: Perform an analytical review and investigate any significant changes or lack of expected changes	Judgemental selection
10	Analytical review of gross margin: Review the monthly/quarterly trading results to gain an understanding of the trends relating to the gross margin by major product groups, geographical areas, and income-generating units. Investigate unusual discrepancies, trends, and relationships.
11	Revenue recognition procedures: Test recorded sales invoices to the records of products, shipped; agreed dates, customers, products, quantities, prices, and amounts. Select the sample to ensure at least 25 percent of the revenue balance has been tested.	Systematic selection	Value weighted method of systematic selection.
12	Sales cut-off: Refer to work performed in Accounts Receivable.	Random selection	Each record in accounts receivable has an equal choice to be chosen to represent the population.