Prepare auditing procedures for transactions and balances by conducting control and substantive Tests

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Audit Procedures are the steps to be followed while conducting audit, However, same can be changed as per required changes in methodlogy of the audit procedures as per required flow of transaction and process.

In respect of Control and Substantive test following test is followed in respect of Transactions and balances:

Transaction: Under this test in respect of transaction is being conducted, Objective is to determine the existence and accuracy of the transaction, ensure that same should happen actually rather than been forged transaction.

- Check the Invoice

- Check the Agreements, where service will be provided monthly and Invoice is issued on 15th of the following month, then although Invoice is issued for that service is complteted, or if not then mail confirmation of recipt of service is suffiicent evidence in such cases.

Balances: Under this ledger balances and cross verification will be checked to ensure the double accounting effect as well as to detect and ensure the ending balances.

- The balance of Ledger is matched with other ledger balances

- In prepaid expenses case, charges incurred and same is reflecting the exact balances or not in ledger.

The above mentioned procedures are followed in respect of testing of Transaction and balances.

ekkarill92 answered 1 year ago

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