Week 7 - Test on Balances/Controls Flashcards
(8 cards)
1
Q
What are the five tests on balances/controls?
A
- analytical procedures
- enquire
- inspect
- observe
- recalcUlate
2
Q
What is the saying to remember the tests on balances/controls?
A
AEIOU
3
Q
Analytical procedures
A
Analysis of significant fluctuations from expected results (most importantly audit test)
4
Q
Enquire
A
How do things work, ask clients questions
5
Q
Inspect
A
E.g when doing stock take
6
Q
Observe
A
E.g weighing up
7
Q
RecalcUlate
A
e.g depreciation charge
8
Q
What word should be avoided?
A
Check
