Appropriate
Audit
Procedures
> Assess the
client's annual
inventory counting
methods.
> Evaluate if the
client's inventory
valuation
approach is
sufficient.
> Ask appropriate
personnel, such
as manufacturing
and warehouse
personnel,
regarding the
presence of
outmoded goods.
> Generate an
account payable
listing for the
client.
> Accounts
payable
confirmation
should be
performed
>Direct
confirmations
are sent to
creditors to
confirm the due
amount by the
customer to their
vendors.
> Track the
progress of total
debt to cash
receipts and
bank statements.
> Monitor the
debt deductions
and repayments
all the way to the
cash
disbursement
record.
> Examine
borrowing
agreements for
prohibitions and
assess any
impact on
financial
statement
disclosures.
>The auditor should
examine the
reasonableness of
costs to confirm that
the expenses
incurred were
appropriate.
> Choosing a
random sample of
recorded expense
transactions to
check the expenses
were recorded when
the goods were
received.
> Monitor the
purchase orders
and supplier.
invoices.