acca考试科目 P7 Please Help?

acca考试科目 P7 Please Help ( Principal Audit Procedures)


Hi, I have greatconfusion regarding principal audit procedures, when we are asked to list theprincipal audit procedures verify the sales figure or any end of year balanceon the SOFP, do we carry out substantive procedures or do we also include sometests of control ? If not, then at what stage are the tests of controls applied? Kindly give some examples to clarify the matter . .

Substantive procedures will be good enough.

tests of control and substentive procedures both can provide audit evidence. In practice (if you have ever worked in a firm), you will find that the best practice is
1. for items of financial position such as assets, receivables, liabilities, auditors use substentive procedure as relevant way to get audit evidence;
2. for items of comprehensive income such as revenure, costs, auditors always use circle method to walk through, e.g. sales circle to test controls, and also substentive procedures such vouching.