Following are audit procedures that are normally conducted in the purchasing process and related accounts.
| 1. |
Test a sample of purchase requisitions for proper authorization. |
| 2. |
Test transactions around year-end to determine if they are recorded in the proper period.
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| 3. |
Review results of confirmation of selected accounts payable. |
| 4. |
Compare payables turnover to previous years' data. |
| 5. |
Obtain selected vendors' statements and reconcile to vendor accounts. |
| 6. |
Compare purchase returns and allowances as a percentage of revenue or cost of sales to industry data.
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| Required: |
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Identify whether the tests listed above are substantive analytical procedures, tests of details of transactions, or tests of details of account balances.
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