General:
o Agree OB with py
o Inspect and agree schedule/register.
o Obtain docs (schedule) Recalculate
o Management representation, (assertions/reasonability)
o Unusual (scrutinize)
o Review disclosure:
o Minutes of meeting
o Exp written back
Analytical
o Develop an expectation based on knowledge of business.
o Compare CY, PY, budget, mm and working papers:
 Payment term
 Balance outstanding
 Current ratio
 Quick asset ratio
 % of
o Test for significant deviations the in above and follow up by enquiry with
management and supporting documentation.
o Inspect and agree the “” data used to calculate ratios with the data in the
Financial information system.
o Calculate the total outstanding debtors per category and
 % of debtors
 % of sales in month
o Compare with prev year to ensure none are missing.
o Determine if any debts are missing by:
 Enquiries with management
 Scrutinizing corresponding files
 Enquires with attorneys.
Test of details
Select a sample of ……. And particularly note unusual entries
Test the Sample source documents
o Signed by both parties
o Correct name of both parties
o Recalculate amounts
 Invoice
 Total of invoices
o Agree up
o Agree down
o Agree with bank statement
o Verify existence and valuation of asset.
o Correct price
Reperform the number sequence for the following
 Anything that effects the journals
Inspect the following suspense files for long outstanding items
 Orders awaiting contract
 Contract awaiting srv
 Srv awaiting invoice
Last delivery note numbers
Delivery note around year end
Other:
Inspect for missing items
Agree details amount and terms to contract
Agree dates to confirm it is recorded in correct period
Recalculate
Bank statement
Inventory





Same valuation method
o Appropriate
NRV write down
Inspect for obsolete or damaged stock
Verify cost