KnS School of Business Studies

CAF 9 Audit & Assurance

Substantive Procedures – Keywords for students ……….. 😊

Verbs / Starting words for Substantive Procedures

1. Calculate / recalculate the working for …..
2. Select a sample of payments / sales invoices / purchase orders
3. Agree on a sample basis….
4. Recalculate the accuracy of……………………
5. Discuss/ Inquire from Management/ Directors.
6. Inspect / review / verify supporting documentation …
7. Obtain the Breakdown of payment …..
8. Review the post year end cash books/ receipts/payments.
9. Obtain a written representation from Management.
10. Review the disclosures in the F/S….
11. Obtain / Dispatch a Bank confirmation letter/ Debtor confirmation/
Creditors confirmation….
12. Review the F/S to ensure that the disclosure is complete & accurate.
13. Whenever we compare or crosscheck, numbers or values from 02
documents, we use the word

• Agree the balance as per X document from Y document.

14. Whenever we are verifying a number from a list /schedule/document we

use the word Trace / Verify / or Examine………..from XYZ document …

E.g. Trace unpresented cheques from post year end Bank statement. OR
• Verify sales price from the master records
• Verify negative balances from the General ledger

15. Compare the X amount with last year’s Y amount.

16. Obtain the schedule of Fixed Assets /sales.
17. Select a sample of credit notes/ P.O/S.O & agree these ….or ….Trace
these from ……………XYZ document.

pg. 1 Prepared by S.K