Please write two tests of controls and two test of substantive tests of transaction here.
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Key Internal Control
Transaction Related Audit Objectives Test of Control
Substantive Test of Transaction
1.
Segregation of the purchasing, receiving, and cash disbursements functions.
Recorded acquisitions are for goods and services actually received (occurrence).
Recorded cash disbursements are for goods and services actually received (occurrence).
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2.
Independent reconciliation of the monthly bank statements.
Existing cash disbursement transactions are recorded (completeness).
Recorded cash disbursement transactions are stated at the correct amounts (accuracy).
3.
Use of prenumbered voucher packages, properly accounted for.
Existing acquisition transactions are recorded (completeness).
4.
Use of prenumbered checks, properly accounted for.
Existing cash disbursement transactions are recorded (completeness).
5.
Use of prenumbered receiving reports, properly accounted for.
Existing acquisition transactions are recorded (completeness).
6.
Internal verification of document package before check preparation.
Recorded acquisitions are for goods and services actually received (occurrence).
Recorded acquisitions are stated at the correct amounts (accuracy).
Acquisition transactions are properly included in the master files, and are properly summarized (posting and summarization).
Acquisitions are properly classified (classification).
Acquisitions are recorded on the correct dates (timing).
7.
Review of supporting documents and signing of checks by an independent, authorized person.
Recorded cash disbursements
