| Step | Audit procedure or test | How? | Shockwave |
|---|---|---|---|
| Analysis | |||
| 1 | Provide totals of entries generated by different sources (e.g. purchase or sales ledger, journal vouchers, etc.) to show the volume and value | How? | Short Movie |
| 2 | Foot (total) the balances to ensure they balance to zero. Note; some ledgers include memo amounts which may need to be excluded | How? | Short Movie |
| 3 | Total (or summarize) transactions by account to prove the trial balance | How? | Short Movie |
| 4 | Analyze year-to-date activity for large operating accounts (rent, taxes, etc) | How? | Short Movie |
| 5 | Re-perform account summarization for management accounts, financial accounts or consolidation | How? | Short Movie |
| 6 | Provide totals of entries generated by different sources (e.g. purchase or sales ledger, journal vouchers, etc) to show the volume and value | How? | Short Movie |
| 7 | Provide detailed analysis of selected accounts | How? | Short Movie |
| 8 | Find journal entries issued on non-business days (weekends and holidays) | How? | Short Movie |
| Calculations | |||
| 9 | Calculate and sort percentage variances in accounts between periods | How? | Short Movie |
| Exception Tests | |||
| 10 | Test for transactions with dates outside the posting month or year (cut-off) | How? | Short Movie |
| 11 | Test for duplicate postings | How? | Short Movie |
| 12 | Test for round numbers in Journal entries | How? | Short Movie |
| 13 | Test for transactions on weekends and holidays | How? | Short Movie |
| 14 | Check for same account, same period, same reference, different amount | How? | Short Movie |
| Matching | |||
| 15 | Compare balances with previous periods, budgets or management accounts to show variances and fluctuations | How? | Short Movie |
| Sampling | |||
| 16 | Select and evaluate attribute or variable samples for physical verification or amount testing | How? | Short Movie |
| 17 | Stratified random sampling is often appropriate for general ledgers as there are often different values and risks associated with different types of items | How? | Short Movie |
| 18 | Alternatively, the transaction file can be split into different types (e.g. sales, purchases) using multiple extractions so that each type can be tested/analyzed appropriately | How? | Short Movie |
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