Beruflich Dokumente
Kultur Dokumente
SUBSTANTIVE TESTS
OF TRANSACTIONS
AND BALANCES
Baker 500
Chan 1000
These are:
• Testing of client’s bank
reconciliation
• Obtaining confirmation of bank
balances from client’s bankers
Sales/cash Accounts
receipts receivable
•Occurrence •Existence
•Measurement •Valuation
• Confirmation
• Subsequent receipts review
• Cut-off
• Analytical procedures
• Tests of sales transactions
• Review of aged trial balance
• Physical examination
• Confirmation
• Inspection of legal documents
• Recomputation, vouching, tracing
• Specialised valuation procedures
Major advantages:
• Directs auditor’s attention to items of risk
and/or materiality
• Undertakes routine audit tasks efficiently