The following are audit procedures from different transaction cycles:
1. Use audit software to foot (add) and cross-add the cash payments journal and trace the totals to the general ledger.
2. Select a sample of entries in the purchases journal and trace each one to a related vendor's invoice to determine whether one exists.
3. Compute inventory turnover for each major product and compare with that of previous years.
4. Use audit software to scan the accounts receivable master file and list all invoices that have remained unpaid for more than 90 days.
5. Confirm a sample of loan payable balances, interest rates and security with lenders.
6. Use audit software to foot (add) the accounts payable trial balance and compare the balance with the general ledger.
7. Examine documentation for purchase transactions before and after the balance sheet date to determine whether they are recorded in the correct accounting period.
8. Inquire of the credit manager whether each account receivable on the aged trial balance is collectable.
REQUIRED
For each audit procedure:
a. Identify the transaction cycle being audited.
b. Identify the type of evidence.
c. Identify whether it is a test of control or a substantive test.
d. For each substantive audit procedure (refer to (c)), identify whether it is a substantive test of transactions, a test of details of balances or an analytical procedure.
e. For each test of control or substantive test of transactions procedure (refer to (c)), identify the transaction-related audit objective or objectives being satisfied.
f. For each analytical procedure or test of details of balances procedure, identify the audit objective or objectives being satisfied.