4.

29
Test Type of test
1 Examine the financial report to determine whetherall
Substantive test of disclosure
related party loans are properly presented
2 Recalculate depreciation figure Substantive test of transactions
3 Trace sales recorded in the sales journal to shipping
Substantive test of transactions
documents
4 Examine sales invoices for initials to indicate that prices
Test of control
and extensions have been checked
5 Check cost of closing inventory to subsequent sales prices Substantive test of balances
6 Confirm loan balances with financial institutions Substantive test of balances
7 Compare wages expense to previous year and budget Substantive analytical procedure

1. Completeness about/of related party loan disclosures

2. Transaction accuracy
3. Transaction occurrence, completeness, accuracy
4. Disclosure classification and understandability, accuracy and valuation
5. Account balances, valuatin and allocation
6. Account balances right and obligation valuation and allocation
7.