Appendix A: Primary Substantive Procedures (PSP) by Account [S11_Exhibit 1]
As we are designing our audit procedures, consider the fact that we perform Primary Substantive Procedures (‘PSP’) on all audit engagements for all significant accoun ts, regardless of the combined risk assessments.
The PSPs are applicable to all industries and financial reporting frameworks and are based on a standardized set of significant accounts, which includes a standard naming convention and the global working paper index (for example, C: Cash, including bank balances). Each PSP includes a title that describes the objective of the procedure. In addition, the most relevant assertions have been indicated for each of the respective procedures.
PSPs describe the nature of the procedures to be performed. As part of the development of our audit procedures, we also include the timing and extent of the PSPs. However, the timing and extent of the primary procedures performed will be affected by our combined risk assessments. Some of the primary procedures may be performed as tests of controls as well as substantive procedures (known as dual-purpose tests).
PSPs on their own will not necessarily provide all of the audit evidence we need on a particular assertion for a significant account. Therefore, our audit procedures also include other substantive procedures we believe are necessary to appropriately respond to our combined risk assessment. In addition, when developing our audit procedures we consider the applicability of any Illustrative Sector Specific Substantive Procedures that are available.
* Balance Sheet and Profit Loss Legend
Balance Sheet (B/S)
E = Existence
V = Valuation
C = Completeness
R&O = Rights & Obligations
P&D = Presentation and Disclosure
Profit Loss (P/L)
O = Occurrence
M = Measurement
C = Completeness
P&D = Presentation and Disclosure
Related Topic:
Illustrative Sector Substantive Procedures Directory System ID: 10114661
Last Modified Date: 30 JUL 2007。