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Substantive Tests of Expenditure Cycle Accounts Substantive Tests
Substantive Tests of Expenditure Cycle Accounts Substantive Tests
Written Report
In
Chapter 10: Auditing the Expenditure Cycle
SUBSTANTIVE TESTS OF EXPENDITURE CYCLE ACCOUNTS
SUBSTANTIVE TESTS
These are detailed investigation of specific account balances and
transactions performed by the auditor to detect material misstatement or fraud
at the assertion level.
Understanding Data
The auditor needs to understand the systems and controls that produced
the data as well as the physical characteristics of the files that contain them.
● Inventory File
The Inventory file contains quantity, price, supplier, and warehouse
location data for each item of product inventory.