Question

Is it possible to audit sales or purchases without using substantive testing? Is it possible to audit sales or purchases with using tests of controls? Who or why not?

Answer 1

1. Yes it is possible to Audit of Sales or Purchases without substantive audit procedures when we check the internal controls of the client were so effective.Even the we can go with verification of sales invoices and supporting documents for the salesacorretiveness.And purchases can be verified with the suppliers invoices and other relevant documentsand can also take the balance confirmations from the suppliers.So by this we can say that audit of sales or purchases can be done without substantive procedures I.e audit of test to test of financial statements.
2. Yes it is possible to audit the sales or purchases using the test of controls where the test of client internal control effectiveness will measmeas.If we rely on the client internal control by that we can reduce the work by going with the sample of sales or purchases but it doesn't mean that we can fully rely on the test of controls where we can use that as base for making as opinion on the maintenance of books of accounts and other opinions
3. those techniques can be used by mainly auditors whether internal or statutory auditor.it doesn't mean that only auditors can use them.