auditoria examen 3: substantiave procedures 12

Prepare a bank transfer schedule

detect kitting

Prepare a four-column proof of cash

Reconcile cash receipt and disbursement totals between company records and ban records

Use a standard confirmation form to confirm account balance information

Verify year-end cash and liability balance information

Obtain bank cutoff statements

Verify reconciling items on the year-end bank reconciliation

Search for large checks to directors, officers, and employees

Identify related party transactions

Verify purchases order, receiving report and customer invoice on paid vouchers

Determine if purchases were properly authorized

Search for large checks to directors, officers, and employees

Identify related part transactions

Evaluate the business purpose of significant and unusual sales transactions

Identify transactions that may be indicative of fraudulent reporting

Perform tests of the accuracy of the client’s journals and ledgers

to determine that client’s accounting procedures are operating effectively

Establish control over all negotiable assets, while performing cash accounts

Avoid an employee to conceal a shortage by transferring it from one asset category to another

Compute interest earned on bonds and notes, and compared with records amounts in the client’s record

This provides evidence that investment income has not been embezzled and the client actually owns the securities recorded in the accounting records