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Track 4 of 19 · Core

Substantive procedures by account

Account-by-account substantive procedures tied to assertions: confirmations, cutoff, inventory observation, the search for unrecorded liabilities, analytical procedures, estimates and journal entry testing.

13 lessonsAbout 55 minAU-C 330 · AU-C 500 · AU-C 501 · AU-C 505 · AU-C 520 · AU-C 540
0 of 13 complete
Syllabus

For: Staff who prepare fieldwork sections and seniors who review them.

  1. 01Designing substantive procedures: nature, timing, extent and interim rollforwardHow AU-C 330 turns assessed risks into substantive procedures: choosing the type of test, when to run it, how much to do, and how to roll interim work forward.5 min · worked example · 4 self-check questions
  2. 02Cash: bank confirmations, reconciliations and the proof of cashSubstantive procedures for cash: testing the bank reconciliation, confirming balances, the proof of cash, transfers and kiting, and what SAS 150 changes from 2028.5 min · worked example · 4 self-check questions
  3. 03Accounts receivable: the confirmation presumption, nonresponses and alternativesThe AU-C 330 presumption to confirm receivables, when it can be overcome, how AU-C 505 controls the process, and what alternative procedures must show.4 min · worked example · 4 self-check questions
  4. 04Revenue testing and cutoff around period-endRespond to the presumed fraud risk in revenue: tests of occurrence and accuracy under ASC 606, cutoff testing on both sides of year-end, and credit memo review.4 min · worked example · 3 self-check questions
  5. 05Inventory: observation, test counts, costing and NRVAU-C 501 inventory observation, test counts both ways, rollforwards from count date, third-party inventory, price testing and lower of cost and net realizable value.4 min · worked example · 4 self-check questions
  6. 06Property, plant and equipment: rollforward, additions, disposals and depreciationSubstantive procedures for fixed assets: the rollforward, vouching additions, testing disposals, recomputing depreciation and checking for impairment indicators.4 min · worked example · 3 self-check questions
  7. 07Accounts payable and the search for unrecorded liabilitiesTest completeness of payables: subsequent disbursements, unpaid invoices, receiving records, vendor statements, payable confirmations and accrued expenses.4 min · worked example · 3 self-check questions
  8. 08Debt: confirmations, interest, covenants and current vs noncurrent classificationAudit borrowings: confirm terms, read the agreement, recompute interest, test covenant compliance and apply ASC 470-10 classification after a breach.5 min · worked example · 3 self-check questions
  9. 09Equity: the rollforward, capital transactions and distributionsSubstantive procedures for equity: rolling forward each component, vouching issuances and repurchases to minutes and agreements, and testing distributions.4 min · worked example · 3 self-check questions
  10. 10Payroll expense and payroll-related liabilitiesSubstantive payroll procedures: payroll analytics, reconciling payroll tax returns to the ledger, testing accrued wages, PTO and bonuses, and existence of employees.4 min · worked example · 3 self-check questions
  11. 11Auditing accounting estimates under AU-C 540 as amended by SAS 143How AU-C 540 works: estimation uncertainty and inherent risk factors, the three response approaches, testing methods, assumptions and data, and evaluating bias.4 min · worked example · 4 self-check questions
  12. 12Journal entry testing for management overrideMeet AU-C 240.32a: confirm the journal entry population is complete, set risk-based selection criteria, test period-end entries and document what you found.4 min · worked example · 3 self-check questions
  13. 13Substantive analytical procedures: expectation, threshold and investigationDesign a substantive analytical procedure that meets AU-C 520.05: reliable data, a precise expectation, a threshold set from materiality, and real investigation.4 min · worked example · 4 self-check questions
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