标题: Types of audit tests [打印本页] 作者: trogulj 时间: 2016-4-16 16:51 标题: Types of audit tests
Auditors need to obtain sufficient and appropriate audit evidence to support assetions at financial statement level, substantive procedures can be used to obtain audit evidence.
Substantive procedures are tests to detect material misstatement on financial statements, these would be carried out to obtain evidence needed, please see in the table below:
Audit assertionType of assertionTypical audit tests
CompletenessClasses of transactions
Account balances
Presentation and disclosure（1）Review of post year-end items
（2）Cut-off testing
（3）Analytical review
（4）Confirmations
（5）Reconciliations to control accounts
Rights and obligationsAccount balances
Presentation and disclosure（1）Reviewing invoices for proof that item belongs to the company
（2）Confirmations with third parties
Valuation and allocationAccount balances
Presentation and disclosure（1）Matching amounts to invoices
（2）Recalculation
（3）Confirming accounting policy is consistent and reasonable
（4）Review of post year-end payments and invoices
（5）Expert valuation
ExistenceAccount balances
（1）Physical verification
（2）Third party confirmation
（3）Cut-off testing
OccurrenceClasses of transactions
Presentation and disclosure（1）Inspection of supporting documentation
（2）Confirmation from directors that transactions relate to business
（3）Inspection of items purchased
AccuracyClasses of transactions
Presentation and disclosure（1）Recalculation of correct amounts
（2）Third party confirmation
（3）Analytical review
Classification and understandabilityClasses of transactions
Presentation and disclosure（1）Confirmation compliance with law and accounting standards
（2）Reviewing notes for understandability
Cut-offClasses of transactions （1）Cut-off testing
（2）Analytical review
