Question: test controls and substantive test please help with the following scenrio; you are a new audit analyst and you are completing a quiz to ensure

test controls and substantive test

please help with the following scenrio;

you are a new audit analyst and you are completing a quiz to ensure that you have a proper understanding of certain concepts before starting work on you first audit client. Consider the audit programme procedures which follow;

- vouch a sample of sale transactions recorded in the sale journal to sales invoices, delivery notes and customer orders to ensure sales/debtors are genuine.

- inspect sales invoices for initials indicating independent checks to ensure that price x quantity calculations are correct.

- inspect sales invoice numbers recorded in the sales journal to ensure the sequence is unbroken

- submit test data for sales transactions dated after 1 Jan 2022 for capture on the clients computerised accounting system for the year ended 31 Dec 2021 to check if they are accepted or rejected.

required; for each of the above

1. identify whether it is a test of control OR substantive test

2. identify one assertion (for each procedure) that will be tested

3. identify a potential misstatement that could occur (i.e if the procedure yielded unsatisfactory evidence, explain how the accounts concerned could be misstated)

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