Chapter 10 Tests of controls

Sales system

1. ordering

2. despatch and invoicing

3. recording, accounting and credit approval

Purchasing system

1. raise requisitions

2. receipts and invoices

3. accounting records

Stock controls

1. recording incoming and outgoing

2. protection of inventory

3. valuation of inventory

4. recording of inventory

5. inventory movement

6. other tests eg discrepancies book vs actual; discrepancies on authorization; obsolete, damages or slow-moving stock

Cash & Bank

1. receipts

2. payment

3. bank reconciliation

4. petty cash

Salaries & Wages

1. setting

2. payments

3. recording

4. deductions

Non current asset

1. Balance

2. transaction

(eg purchasing, disposal, depreciation, recording the cost, valuation)