Listed in the table below are some common audit procedures. For each procedure below:Identify whether it is a test of control (TOC), substantive test of transaction (STOT), analytical procedure (AP) or a test of details of balances (TODOB). Write your answer in the 2nd column of the table below. State one audit objective that is being satisfied. Write your answer in the 3rd column of the table below. Procedure(a) Type of Test(b) Audit ObjectiveExample: Compare the quantity and description of items on duplicate sales invoices with related shipping documents.STOTAccuracy1.Foot the list of accounts payable and trace the balance to the general ledger. 2. Account for the sequence of purchase orders 3. Select a sample of purchase transactions from purchase journal and trace them to vendors’ invoices and statements 4. Exam cash payments subsequent to the balance date to see if they are related to unrecorded accounts payable.

An audit of financial statements is an examination conducted by an independent auditor on the…

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FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Listed in the table below are some common audit procedures. For each procedure below:

Identify whether it is a test of control (TOC), substantive test of transaction (STOT), analytical procedure (AP) or a test of details of balances (TODOB). Write your answer in the 2^nd column of the table below.
State one audit objective that is being satisfied. Write your answer in the 3^rd column of the table below.

Procedure	(a) Type of Test	(b) Audit Objective
Example: Compare the quantity and description of items on duplicate sales invoices with related shipping documents.	STOT	Accuracy
1.Foot the list of accounts payable and trace the balance to the general ledger.
2. Account for the sequence of purchase orders
3. Select a sample of purchase transactions from purchase journal and trace them to vendors’ invoices and statements
4. Exam cash payments subsequent to the balance date to see if they are related to unrecorded accounts payable.

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