Your client, ABC Ltd. has a system for inputting purchase and expense invoice where the operator inputs the following from each item. Order number (a code 2221 is used for items like electricity) Supplier name Supplier code number First four letters of nominal account name (entered on invoice by purchase department manager) Nominal account code (entered by purchase department manager) Date Goods inward note number Net amount VAT amount Gross amount Required: List some audit tests that could be applied to these items indicating the purpose of each test and the relevant audit evidence obtained

Audit Tests
1. The auditor should inspect the invoice for the date to ensure that it relates to the client‘s financial period.
2. The auditor should consider whether the supplier‘s name appears on the list for authorized suppliers of the company to determine whether orders to such supplier are authorized.
3. The auditor should recompute the value of the invoice and compare with that on the invoice to ensure arithmetic accuracy of the invoice.
4. The auditor should compare the goods inward note content with the stock records to ensure that goods were infact received by the company.



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