Acca F8 Toc

Substantive Procedures - Class of Transactions
SALES AND SALES RETURN
Occurrence



Compare Sales of this year with Sales of last year as well as

Analytical Procedures

(for

with budgeted and Industry average. Investigate unusual

Overstatement)

difference.


Completeness
(for

Compare G.P. Ratio of this year with last year as well as budgeted and Industry average. Investigate unusual difference.



Understatement)

Review a reconciliation of Inventory (opening + Produced disposed = closing) and compare units sold with production record 

Develop an expectation about Sales to test the reasonableness of Sales (by multiplying number of units sold with price per unit). Occurrence



Select a sample of recorded transactions from Sales Journal, and vouch for complete audit trail i.e. from recording Journal to initiative document e.g. G.L. Sales Invoice, Delivery Note,
Customer Order.

Completeness



Select a sample of Shipping Documents, and vouch for complete audit trail i.e. from Shipping documents to Sales Invoice,

Tests Of Details

recording in GL to obtain evidence that all goods dispatched have been accounted for.


Review reconciliation between Individual Sales Invoices and Total posted in Debtors' Control Account.

Accuracy



Recalculate amount of bill for a sample of sales invoices by using quantity from Dispatch Note, Rate from authorized rate list, and also check mathematical accuracy of invoices.

Classification



Review ledger for any unusual debits/credits to identify any misclassification. 

Examine a sample of sales invoices for proper classification into revenue accounts.

Cut off



Perform Cut off Test i.e. Select a sample of sales invoice just before and after year end and compare dates of shipment with the dates they were recorded in the sales journal.

PURCHASES AND PURCHASE RETURN
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