Syllabus D4

For each of the account balances stated in this sub- capability:
Explain the audit objectives and the audit procedures to obtain sufficient, appropriate evidence in relation to:
a) Receivables: 
i) direct confirmation of accounts receivable 
ii) other evidence in relation to receivables and prepayments, and
iii) completeness and occurrence of revenue.

b) Inventory: 
i) inventory counting procedures in relation to year-end and continuous inventory systems
ii) cut-off testing
iii) auditor’s attendance at inventory counting 
iv) direct confirmation of inventory held by third parties 
v) valuation, and
vi) other evidence in relation to inventory.

c) Payables and accruals: 
i) supplier statement reconciliations and direct confirmation of accounts payable, 
ii) obtain evidence in relation to payables and accruals, and
iii) purchases and other expenses.

d) Bank and cash: 
i) bank confirmation reports used in obtaining evidence in relation to bank and cash
ii) other evidence in relation to bank and 
iii) other evidence in relation to cash.

e) Tangible and intangible non-current assets 
i) evidence in relation to non-current assets, 
ii) depreciation, and
iii) profit/loss on disposal

f) Non-current liabilities, provisions and contingencies
i) evidence in relation to non-current liabilities, and
ii) provisions and contingencies

g) Share capital, reserves and directors’ emoluments: 
i) evidence in relation to share capital, reserves and directors’ emoluments