Audit for purchase cycle

Audit objective
Occurrences There is the proper recorded have been made by Faezah Berhad for the purchases,
from their vendor.
Completeness The existing purchases item have been recorded in proper document and account.
Accurate The purchase item should be recorded by Faezah Berhad accurately.
Posting and
summarizing
The amount that has been recorded in purchase journal should being posted to the
master file.
Classification The recorded are correctly been classified by Faezah Berhad
timing The record should be recorded on the true date went the item had been acquired

Audit procedure:
Substantive test
Occurrences
If the auditors are able to detect material amount, the auditor should review the purchase
journal, general ledger, and account payable master file.
The auditor need to examine the document for seeking a reasonableness and authenticity
Auditor should check master file for any suspicious vendor
Compare the inventory available in warehouse with the record in master file
Completeness
Compare between receiving report with the purchase journal for Faezah Berhad
Check vendor invoice with purchase journal
Accuracy
Compare transaction that have been recorded in purchase journal with vendor invoice ,
receiving report , and other supporting documentation
Recalculate the amount relating to vendor invoice including all discount and freight
Posting and summarization
An auditor must test on clerical accuracy by footing the journals with tracing the posting to
general ledger and account payable and inventory master files.
Classification
The auditors should compare classification from account chart by referring to Faezah
vendor invoice
Timing
Auditor must compare between the dates of receiving report and vendor invoice with the date that
have been stated on Faezah Berhad purchase journal




Audit for sales cycle
Audit objective
Occurrences Sales that have been recorded are for actual shipment that been send to non-
fictitious customer
Completeness All existing transaction have been recorded
Accuracy Amount of goods shipped are correctly billed and recorded in recorded sales
Posting and
summarization
The amount that has been recorded in sales journal should being posted to the
master file.
Classification The recorded are correctly been classified by Faezah Berhad
Timing The record should be recorded on the true date went the item had been sales

Audit procedure:
Substantive test
Occurrences
Check for a sequences of sales invoice for Faezah Berhad
The auditor should review sales journal and master file if there is a transaction with material
amount
Trace all documents that can be used to show the transaction including duplicate sales invoice,
bill of landing, sales order, and customer order.
Completeness
Check their shipping document to the sales journal in order to ensure that all transaction are
included
Accuracy
Recalculating the price extension on Faezah sales invoice
Trace the details on sales invoice with shipping document, sales order and customer order.
Check on the equality between sale journal and sale invoice
Posting and summarization
Check the amount, date and invoice number for the account receivable master file and sales
invoice whether equal or not.
Classification
Check the duplicate sales invoice to ensure the proper classification have been made
Timing
Auditor must compare between the dates of recording of sales with the duplicate sales invoice
and also bill of landing