Page 78 - Auditinf Electronic System

2. Assess planned controls risk:
uses the information obtained in understanding internal control to assess

existing control determine any control deficiency and identify control risk. The
auditor has to assess effectiveness of key controls:

The key control activities Include

1) Separation of asset Custody from Other Functions: Separation of
responsibilities for signing checks and performing the accounts payable
function

2) timely recording and independent review of transactions: Careful
examination of supporting documents by the check signer at the time the
check is signed.

3) authorization of payments: The signing of checks by an individual with
proper authority

4) Documentation of payments: The checks should be prenumbered to make
it easier to account for

the auditor associates the controls with the 6 objectives of auditing sales
transactions using Control Matrix.
The auditor Assesses control risk for each objective by evaluating the
controls and deficiencies for each objective.

▪ Identify the 6 objectives of auditing sales transactions (Occurrence,
Completeness, Posting and summarizing, classification and timing)

Four of the six transaction-related audit objectives for acquisitions deserve special
attention

1) Occurrence: are recorded Acquisitions Are for Goods and Services actually
Received,

2) Completeness: are all existing Acquisitions Recorded
3) Accuracy: are Acquisitions Are Accurately Recorded
4) Classification: Acquisitions Are Correctly Classified
5) Posting and Summarization: are all purchases on account transactions

recorded A/P master file
6) Timing: all transactions recorded in the correct dates

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‫جميع الحقوق محفوظة ـ الإعتداء على حق المؤلف بالنسخ أو الطباعة يعرض فاعله للمسائلة القانونية‬