Performing Audit Procedures (Ref: Para. Performing Audit Procedures (Ref: Para. 10-11)

Performing Audit Procedures (Ref: Para. 10-11)

1. An example of when it is necessary to perform the procedure on a replacement item is when a voided cheque is selected while testing for evidence of payment authorisation. If the auditor is satisfied that the cheque has been properly voided such that it does not constitute a deviation, an appropriately chosen replacement is examined.
2. An example of when the auditor is unable to apply the designed audit procedures to a selected item is when documentation relating to that item has been lost.
3. An example of a suitable alternative procedure might be the examination of subsequent cash receipts together with evidence of their source and the items they are intended to settle when no reply has been received in response to a positive confirmation request.