Helppp

[Asif]

Could anyone please explain me the different between when it says to -

Describe the audit procedure of a purchase system ?
Describe the audit procudre of purchase in the financial statement ??

Describe the substantive procedure of purchase in the financial statement ?
describe the substantive procecure of purchase system ??


PLLEAASSEEE HELP…i am really struggling with this issue

[dragoon_alex]

Describe the audit procedure of a purchase system ?
This means ask the audit procedure for internal control system for purchase

Describe the audit procudre of purchase in the financial statement ??
This means ask the substantive text for finanical statement


Describe the substantive procedure of purchase in the financial statement ?
Describe the substantive procecure of purchase system ??

These two I thinks very similar as Question 2

[Asif]

me too....can ne experts help ?? authors?? maybe

[Simy]

1. Describe the audit procedure of a purchase system?

Purchase system is normally tested for the efficiency of internal control. Therefore normally test of controls are performed on it. Test of control provides audit evidence that internal controls are operating as they should.

2. Describe the audit procedure of purchase in the financial statement?

The audit procedures applied for testing the purchases in the financial statements relate to detecting the existence of material misstatements at the assertion level. Therefore substantive procedures are applied by the auditor to test this.

3. Describe the substantive procedure of purchase in the financial statement?
As stated above, purchases in the financial statements are tested by using substantive audit procedures.. The audit tests relate to testing the following assertions: completeness, occurrence, accuracy, cut-off and classification. You can find more detailed explanation of the assertions and the related audit procedures, in Study Guide E1 of the GTG Study text.

4. Describe the substantive procedure of purchase system?
As stated in the answer to the first question, purchase system is normally tested for the efficiency of internal control. Therefore test of controls are used for this purpose. However if the test of controls indicate that the internal controls on the purchase system are efficient, then the substantive procedures relating to purchases in the financial statements are less extensive. On the other hand, if controls are not operating efficiently then more extensive procedures are performed on the purchase in the financial statements.

I hope it helps.