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substantive procedures f8

+1 Vote
substantive procedures f8

hello,

help!! how to answer question on substantive procedure ?
for example substantive procedures over bank balance. how should i see this question and answer it ? based on what ?

May 20th 2016 AN ACCA USER 250 Points

2 Replies

+1 Vote

i am not a 100% sure about this but i take it more like an audit procedure. Like for the procedures you would do to check the accuracy etc of the bank balance
for example:
- you can review prior year bank balance against current year and discuss any significant difference.
- you can tally the client's banked amount against bank statement/bank (cash) certificate to confirm if both show similar amounts.
- you can also may be recalculate the bank amount by reviewing the invoices
etc.

(hoping i am not wrong)

May 22nd 2016 AN ACCA USER 380 Points
+1 Vote

Totally agree with the answer given. You are merely listing procedure for proof of account balances.
One way to remember is to use the assertions concept which for bank and cash is existence, rights and obligations, completeness and allocation and valuation.

hope that helps.

June 1st 2016 AN ACCA USER 180 Points
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