MGAD10H3 Lecture Notes - Trend Analysis, Financial Statement, Regression Analysis
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Document Summary
Chapter 9 execution of the audit performing substantive procedures. Designed to obtain direct evidence of completeness, accuracy and validity of data and the reasonableness of the estimates and other info contained in f/s. Common substantive procedures: sending bank confirm, observing inventory count, confirming receivables balances, examine material journal entries and other adjustments of audit importance. Relationship between risk assessment and nature, timing, extent of substantive procedures. Update findings from time of interim procedures through to ye. Tests of details: not analytical procedures, tests of details of transactions verify balance/transaction back to supporting documentation (vouching) Balance is taken from records and verified by agreeing to evidence. Ensures transactions not overstated: tracing source document traced to records. Ensure balance not understated (i. e. completeness: dual purpose tests evidence of effectiveness of controls and item recorded properly, tests of details of balances. Support ending general ledger balances of an account: 3 main types of tests of details.