The following are generally performed tests of substantive and controls tests of transactions audit procedures in sales and collection cycle:
• Account for sequence of shipping documents and observe each one to ensure that a duplicate sales invoice is attached.
• Compare and contrast the quantity and description of items on the shipping documents with related duplicate sales invoices.
• Trace recorded sales in sales invoice to the related accounts receivable master file and compare the customer name, amount and date for each one.
• Analyze sales returns for approval by authorized official.
i) Recognize whether each procedure is test of control or a substantive test of transaction.
ii) Describe which transactions-related objectives each of above audit procedures fulfils.
iii) Recognize the type of audit evidence used for each procedure.