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    Audit For Purchase Cycle

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    SarlamSaleh
    In conclusion, overall is okay but it has something error which is in inventory of Beras Faiza Berhad. The inventory and the amount must be similar or existence. It is because the auditor will check and verify the amount must be the same as the document. Beras Faiza Berhad has make sure that their inventory or stock doesn’t have fraud and put the internal control for the first priority.

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    Audit For Purchase Cycle

    Uploaded by

    SarlamSaleh
    296 views2 pages
    In conclusion, overall is okay but it has something error which is in inventory of Beras Faiza Berhad. The inventory and the amount must be similar or existence. It is because the auditor will check and verify the amount must be the same as the document. Beras Faiza Berhad has make sure that their inventory or stock doesn’t have fraud and put the internal control for the first priority.

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    Audit for Purchase Cycle

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    In conclusion, overall is okay but it has something error which is in inventory of Beras Faiza Berhad. The inventory and the amount must be similar or existence. It is because the auditor will check and verify the amount must be the same as the document. Beras Faiza Berhad has make sure that their inventory or stock doesn’t have fraud and put the internal control for the first priority.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    296 views2 pages

    Audit For Purchase Cycle

    Uploaded by

    SarlamSaleh
    In conclusion, overall is okay but it has something error which is in inventory of Beras Faiza Berhad. The inventory and the amount must be similar or existence. It is because the auditor will check and verify the amount must be the same as the document. Beras Faiza Berhad has make sure that their inventory or stock doesn’t have fraud and put the internal control for the first priority.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 2

    Audit for purchase cycle

    Audit objective
    Occurrences There is the proper recorded have been made by Faezah Berhad for the purchases,
    from their vendor.
    Completeness The existing purchases item have been recorded in proper document and account.
    Accurate The purchase item should be recorded by Faezah Berhad accurately.
    Posting and
    summarizing
    The amount that has been recorded in purchase journal should being posted to the
    master file.
    Classification The recorded are correctly been classified by Faezah Berhad
    timing The record should be recorded on the true date went the item had been acquired

    Audit procedure:
    Substantive test
    Occurrences
    If the auditors are able to detect material amount, the auditor should review the purchase
    journal, general ledger, and account payable master file.
    The auditor need to examine the document for seeking a reasonableness and authenticity
    Auditor should check master file for any suspicious vendor
    Compare the inventory available in warehouse with the record in master file
    Completeness
    Compare between receiving report with the purchase journal for Faezah Berhad
    Check vendor invoice with purchase journal
    Accuracy
    Compare transaction that have been recorded in purchase journal with vendor invoice ,
    receiving report , and other supporting documentation
    Recalculate the amount relating to vendor invoice including all discount and freight
    Posting and summarization
    An auditor must test on clerical accuracy by footing the journals with tracing the posting to
    general ledger and account payable and inventory master files.
    Classification
    The auditors should compare classification from account chart by referring to Faezah
    vendor invoice
    Timing
    Auditor must compare between the dates of receiving report and vendor invoice with the date that
    have been stated on Faezah Berhad purchase journal




    Audit for sales cycle
    Audit objective
    Occurrences Sales that have been recorded are for actual shipment that been send to non-
    fictitious customer
    Completeness All existing transaction have been recorded
    Accuracy Amount of goods shipped are correctly billed and recorded in recorded sales
    Posting and
    summarization
    The amount that has been recorded in sales journal should being posted to the
    master file.
    Classification The recorded are correctly been classified by Faezah Berhad
    Timing The record should be recorded on the true date went the item had been sales

    Audit procedure:
    Substantive test
    Occurrences
    Check for a sequences of sales invoice for Faezah Berhad
    The auditor should review sales journal and master file if there is a transaction with material
    amount
    Trace all documents that can be used to show the transaction including duplicate sales invoice,
    bill of landing, sales order, and customer order.
    Completeness
    Check their shipping document to the sales journal in order to ensure that all transaction are
    included
    Accuracy
    Recalculating the price extension on Faezah sales invoice
    Trace the details on sales invoice with shipping document, sales order and customer order.
    Check on the equality between sale journal and sale invoice
    Posting and summarization
    Check the amount, date and invoice number for the account receivable master file and sales
    invoice whether equal or not.
    Classification
    Check the duplicate sales invoice to ensure the proper classification have been made
    Timing
    Auditor must compare between the dates of recording of sales with the duplicate sales invoice
    and also bill of landing

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