ACCA F8 - Audit and Assurance Revision Kit 2016

Occurrence
Audit procedure
For a sample of amounts in the payables ledger,
trace these to the invoice and other supporting
documentation such as GRNs
For a sample of GRNs, agree back to the original
order details
For a sample of payees on the computerised
payments list, agree amounts back to the
supporting documentation such as invoices and
GRNs
For a sample of payments made after the year-end,
trace back to the computerised payments list
For a sample of payees on the computerised
payments list, trace payment to post year-end bank
statements
Purpose
To provide assurance on the occurrence assertion
To provide assurance on occurrence
To provide assurance that payment has been made
for a bona fide liability of the company
To provide assurance that payment relates to the
company
To confirm that payment was made to authorised
suppliers of the company
Cut-off
Audit procedure
For a sample of GRNs dated shortly before and
after the year-end, agree that the amounts on
invoices are posted to the correct financial year
Review the schedule of accruals and agree to
GRNs, inspecting the date of receipt of goods to
ensure that goods received after the year-end are
not included
Inspect outstanding orders on the 'orders placed'
file for any orders completed but not yet invoiced
Purpose
To ensure that amounts are included in the correct
financial period
To ensure that amounts are included in the correct
financial period
To ensure that amounts are included in the correct
financial period
(b)
Audit procedures on trade payables
Audit procedure
Cast the list of payables balances from the ledger
at the year-end
Reconcile the payables list from the payables
ledger to the general ledger and accounts
Perform analytical procedures on trade payables,
comparing balance to prior year and investigating
any significant fluctuations
For a sample of balances, trace amount to
supporting supplier statements
Test cut-off by taking a sample of GRNs either side
of the year-end and verifying that amounts are
included on the payables ledger for goods received
before the year-end
Review disclosure of payables in the draft financial
statements
Purpose
To provide assurance that the list is complete and
accurate
To provide assurance that the figures are complete
and accurate and correctly reflected in the financial
statements
To provide assurance on completeness and accuracy
and to highlight areas of concern
To confirm the existence and accuracy of the amount
outstanding at the year-end
To ensure that amounts are included in the correct
financial period
To ensure that payables have been disclosed
appropriately in the statement of financial position
and notes as either current or long-term liabilities
Mock exam 2: answers 231