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Substantive Procedures for the Purchasing Process [Video]

Substantive Procedures for the Purchasing Process

After the auditor has set the achieved level of control risk and determined the risk of material misstatement, the auditor can adjust detection risk. The auditor can decrease detection risk by increasing the nature, timing, and extent of the substantive procedures to be performed.

There are two types of substantive procedures: analytical procedures and tests of details.

Analytical procedures substantiate accounts or disclosures by comparing recorded amounts (or ratios derived from recorded amounts) with the auditor’s independent estimates for those amounts. The auditor arrives at independent estimates by examining relationships between accounts (both financial and nonfinancial) to see if they are plausible. As part of this process, the auditor would:
• Compare financial information to information from comparable prior periods
• Compare financial information to budgeted information
• Examine relationships between related accounts during the period
• Compare financial information to the industry average
• Compare financial information with nonfinancial information

There are two types of tests of details: tests of transactions and tests of account balances.

Tests of transactions are designed to detect fraud or errors in individual transactions. An example would be vouching a sample of journal entries from the purchases journal back to the respective purchase orders, receiving reports, and invoices to verify occurrence.

Tests of account balances, on the other hand, verify the ending balances of accounts. An example would be confirming accounts payable balances with vendors to determine whether the ending balance for accounts payable is fairly stated.

After the substantive procedures have all been performed, the auditor will calculate the aggregate misstatement for accounts payable and related accounts. If the aggregate misstatement is less than or equal to the tolerable misstatement, the auditor will conclude that accounts payable and related accounts are fairly presented. If the aggregate misstatement is more than the tolerable misstatement, the auditor will conclude that accounts payable and related accounts are not fairly presented. In that case, the auditor would want the client to make an adjusting journal entry.

0:00 Introduction
0:28 Substantive procedures and detection risk
0:49 Types of substantive procedures
2:01 Analytical procedures
4:33 Tests of details (tests of transactions)
8:26 Tests of details (tests of account balances)
10:15 Confirmations of accounts payable
11:41 Comparing the aggregate misstatement to the tolerable misstatement
13:13 Auditing disclosures

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Resources for Accountants

CPA - Creating A Path Abroad | Wasim Mankad | CFO at Lagardere Travel Retail, Dubai | US CPA Course [Video]

Wasim, Chief Financial Officer at Lagardere Travel Retail, Dubai, with 11 years of experience.He says CPA opens tons of opportunities in Dubai in Audit, Tax, FP&A, and other F&A profiles.Listen to the insightful conversation to know how CPA can help you grab those opportunities in Dubai.Simandhar Education will help you ace the CPA, CMA, EA, CIA, and IFRS certifications. For any further information regarding the courses, you can feel free to reach out to our expert counselors at 𝟕𝟕𝟖𝟎𝟐𝟕𝟑𝟑𝟖𝟖. Drop your Details: https://bit.ly/3wf2fD4 ------------------***-----------------***---------------------***---------------------***-----------------------𝗔𝗯𝗼𝘂𝘁 𝗦𝗶𝗺𝗮𝗻𝗱𝗵𝗮𝗿 𝗘𝗱𝘂𝗰𝗮𝘁𝗶𝗼𝗻Simandhar Education is a leading training provider for US CPA, US CMA, CIA, EA, and IFRS. Simandhar Education always believes in transforming education and providing high standards of learning to the students. We are the channel partner of AICPA and the official partner of Becker Education, the most acclaimed CPA reviewer in the USA. We believe in imparting information and concentrate on grooming individuals and making them fit for the corporate world. The academy provides quality education with more emphasis on practical knowledge. Simandhar Education has a wide network of world-class trainers, teachers, and industry experts, and all the teachers at Simandhar are CPA qualified and rank holders. We also provide guaranteed placement support to the students and personal grooming sessions for the interviews. 𝗦𝗶𝗺𝗮𝗻𝗱𝗵𝗮𝗿 𝗔𝗰𝗵𝗶𝗲𝘃𝗲𝗺𝗲𝗻𝘁𝘀Simandhar education has over 3000 enrolled students and has successfully placed more than 200 students across reputed firms. We have a team of 10 leading faculties and have effectively conducted 100+ corporate events in the CPA/ CMA domain. Contact Us: +91- 7780273388 or leave a message on social media.Make sure to hit the like, share and subscribe to our YouTube channel.To get more updates on the YouTube Channel click: http://bit.ly/2Mt2BB1Now you can listen to our podcast at https://bit.ly/36PYQPP ------------------------------- 𝐅𝐨𝐥𝐥𝐨𝐰 𝐮𝐬 -----------------------------------Make Sure to follow us on our Social Media Channels:Podcast: https://bit.ly/36PYQPPInstagram: https://zcu.io/TNgDLinkedin: https://bit.ly/2Oh9w5dFacebook: https://zcu.io/gDvXTwitter: https://zcu.io/17cSThink CPA / CMA - Think Simandhar#uscpa #cpaexam #accounting

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5 Best Sports Betting Apps ★ 2022 | Online Sports Betting Tips [Video]

Discover the best 5 sports betting sites and apps. Here’re our picks for the 5 best sports betting sites, apps and sportbooks: 1. Bovada (bonus: $750): https://record.revenuenetwork.com/_4FiJyM5mQu397H-d5Ks7MGNd7ZgqdRLk/1/ 2. BetUS (Bonus: up to $2500): https://record.revmasters.com/_GDJId2cL3emhvo5nC3tZQ2Nd7ZgqdRLk/1/ 3. XBet (Bonus: up to $500): https://record.webpartners.co/_pI3eS84syUppj9fKdCJ9umNd7ZgqdRLk/1/ 4. BUSR (Bonus: up to $1000): https://record.webpartners.co/_pI3eS84syUrYGgllr3Vm5GNd7ZgqdRLk/1/ 5. MyBookie (Bonus: double first deposit): https://record.webpartners.co/_pI3eS84syUo-tw2NZ2I77WNd7ZgqdRLk/1/One of the most critical factors in sports betting success is finding the right sportsbook to bet at. Problem is, there are so many of them. It’s easy to lose time scanning the net for sports betting sites, time which could be better spent winning a few bucks on tonight’s game. Now, to help you quickly find the betting site best suited to your needs, we have tried and evaluated dozens of sites to come up with a list of 5 top sports betting sites. The above are our picks for the 5 best sports betting sites, apps, and sportsbooks. Note that we may earn a small commission from some of the links at no additional cost to you to help support this channel.

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IFRS CPE Courses [Video]

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Inspiring Short Stories | The House with the Golden Windows | Motivational & Inspirational Video [Video]

The House with the Golden Windows. Inspiring short stories. Motivational & inspirational video. Best short inspirational videos. Inspirational quotes about life and love.The motivational stories and famous anecdotes presented in this video are excerpts from our book: Top 100 motivational stories: the best inspirational short stories and anecdotes of all time. Get the book here: https://www.bizmove.com/inspiration/m9b.htm