Free Essay

Test of Control

In: Business and Management

Submitted By amaljasni
Words 256
Pages 2

|1. |Occurrence |All recorded purchases are bona fide |Serviced received are approve in writing and|
| | |transactions, in that they relate to goods or |goods received are counted, inspected and |
| | |services authorised or received. |compared to purchase order before |
| | | |acceptance. |
| | | |TOC: Examine evidence of approved purchase |
| | | |and services orders. |
|2. |Completeness |All purchases of inventory for the period are |Suppliers’ invoices are numbered using an |
| | |recorded. |invoice register or pre numbered vouchers |
| | | |and the sequences accounted for. |
| | | |TOC: Review the evidence of the accounting |
| | | |for numerical sequence of invoices. |
|3. |Accuracy |Purchases of inventory are recorded correctly as|Established procedures for review of |
| | |to amount and summarised correctly. |purchase amount and verification to |
| | | |supporting documentation. |
| | | |TOC: For sample of vouchers selected, |
| | | |examine for evidence that review of purchase|
| | | |amount and verification to supporting |
| | | |documentation undertaken. |
|4. |Classification |Purchases are classified in accordance with |Separate accounts in chart of accounts for |
| | |classifications policies. |purchases from related parties, and possibly|
| | | |additional authorisation for related-party |
| | | |transactions. |

Purchases of inventory transactions

Cash disbursement transactions

|1. |Occurrence | |Cheques printed or prepared only when |
| | | |receipt of goods or services and approval |
| | | |are documented. |
| | | |TOC: Select a sample of cash disbursement |
| | | |transactions from cash payments journal and |
| | | |inspect supporting documentation for |
| | | |indication of checking, review and approval.|
|2. |Completeness |All cash disbursement is recorded. |Unissued cheques protected and the sequence |
| | | |accounted for. |
| | | |TOC: Observe and inquire about cheque |
| | | |signing, including protective measures for |
| | | |unissued cheques and cheques-signing |
| | | |services. |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |

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