The following are 11 audit procedures taken from ana audit program:
1. Foot the accounts payable trial balance and cmopare the total with the general ledger.
2- Examine vendors’ invoices to verify the ending balance in accounts payable.
3-compare the balance in payroll tax expense with previous years. The comparison takes the increase in payroll tax rates into account.
4- Examine the internal auditor’s on monthly bank reconciliations as an indication of whether they have been reviewed.
5- Examine vendors’ invoices and other documentation in support of recorded transactions in the aquisitions jounal.
6- Multiply the commission rate by total sales and compare the result with commission expense.
7- Examine vendors’ invoices and other supporting documents to determine whether large amounts in the repair and maintenance account should be capitalized.
8- Discuss the duties of the cash disbursements clerk with him and observe whether he has responsibility for handling cash or preparing the bank reconciliation.
9-Confirm accounts payable balances directly with vendors.
10-Account for a sequence of checks in the cash disbursements journal to determine whether any have been omitted.
11- Inquire about the accounts payable supervisor’s monthly review of a computer generated exception report of receiving reports and purchase orders that have not been matched with a vendor invoice.
a) indicate whether each procedure is a test of control, substantive test of transactions, analytical procedure, or a test of detail of balances.
b) Identify the type of evidence for each procedure.
