In relation to the assertions identified in 2 she asks

Question

Question

Case Scenario

Your audit manager has asked you to do the following:

• Select a sample of creditors from the year-end creditors ledger:
• Vouch each creditor's balance to selected invoices and subsequent cash payments: and
• Agree the total of the creditors' ledger to the trial balance and general ledger.

Required

She now wants to see if you understand the reasoning behind these activities and asks you to prepare a memo that:

1. Identifies the audit assertion each of the above procedures is directed towards
2. Identifies any assertions that you consider should be further tested (do not consider disclosure issues).
3. In relation to the assertions identified in (2), she asks you to identify additional procedures you would perform to gather sufficient appropriate evidence.

Note: Please refer also to ASA 315(ISA 315) and ASA 500 (ISA 500)

 Adapted from the Professional Year Programme of The Institute of Chartered Accountants in Australia - 1999 Accounting 2 Module