TESTING THE PURCHASES SYSTEM-1
TESTING THE PURCHASES SYSTEM
1. Serial numbering
2. Evidence of sequence
3. Evidence of matching
purchase invoices with goods received notes and purchase
4. Evidence of checking
casts, extensions and tax treatment
5. Evidence of account
6. Initialing of invoice
grid for work done.
7. Approval of purchase
invoice for further processing.
Test for evidence of matching credit notes to goods returned
Test for evidence of authorization of adjustments to payables
(i) Evidence of review of reconciliation of purchase ledger
(ii) Evidence of
authorization of adjustments to purchase ledger control account.
Test for evidence of a sequence check
Test for evidence of a sequence check.
(i) Evidence of a sequence check.
(ii) Evidence of approval.
(iii) Adherence to authority limits
The control objectives in respect of a wages and salaries system
are as follows:
(a) Payment of wages and salaries should be made only in respect
of the client's authorized employees.
(b) Payment should be made at authorized rates of pay.
(c) Wages and salaries payments should be in accordance with
records of work performed, e.g. time, output,
commissions on sales.
(d) Payroll and payroll deductions (tax and social security)
should be calculated accurately.
(e) Payment should be made to the correct employees.
(f) Liabilities to the tax authorities for tax and social
security should be properly recorded.