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help me with 2 example each for control test and Substanstive test of pay and compensation dept.

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May 12th 2015 AN ACCA USER 140 Points

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Hey
Basically test of control is that you are testing the effectiveness of the controls for example :
Purchase notes are singed by the one who prepares it and FM.. this here is a control, we test it by observing this process, selecting a sample of Purchase notes and see if both signatures are there.

on the other hand substantive procedures we are testing the assertions of the F/S.. CEVOP
examples:
Completness ( B/S inventory )
request list of inventory sheet go the the warehouse check if all inventory on the sheet is completed
Existence
whatever is in the stock, exists in the sheet.

i hope i made it little clear.. as am sitting for the second time in June.

anyone correct me if am wrong with both explanation and examples

May 15th 2015 AN ACCA USER 170 Points
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