Investigate credit balances to determine if they represent actual bank overdrafts. Recalculate inventory valuation under the full absorption costing method.
Surprise cash count. List each item in the fund showing the denominations of notes and coins 5. For this reason, it is usually efficient for auditors to verify account balances by performing tests on individual transactions. Compare account balances with the preceding year or years.
During the tests of details of transactions, the auditor traces bank transfers and performs cash cutoff tests. Verify the cash balance used in the bank reconciliation: a.
Obtain supporting documents for any book and bank reconciling items 4. The risk associated with each assertion is assessed, and audit procedures related to specific assertions are undertaken which are aimed to reduce the risk of material misstatement for a specific assertion to an acceptable level.
Verify the propriety of inventory flow. Accuracy: relates to determining the appropriate recording of the dollar value and other information of transactions.