Study Smart with SAS

For detail;
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Ali Sabri; 0312-8408814

Key to control…
In exam you are majority asked for

i. Identify and explain key controls (S A F R)

ii. Describe Test of Control

Key Control that must be How to test control (TOC)

present
Segregation of duty - Review/ Inspect GRN and ensure the person
S preparing the GRN should not be counting the
goods received.
- Inspect Sale Invoice and ensure that person
preparing sale invoice should not be part of sales
department
IMP: Auditor should check that segregation of duties exist
between the person checking the goods against delivery
note and person preparing the GRN.
Sequentially prenumber Inspect a series of Sale order/ Purchase order and ensure
the documents are sequentially pre-numbered and ensure
that sale order/purchase order are not duplicate or
processed twice
Standard operating Over here your class understanding and knowledge of
procedure process is important
Trick; Take one step back & one step Forward of the
process;
- Sales Process (Customer Place order – Sale Order –
Production Department – Dispatch Warehouse-
Sale invoice..)
Trace Back;
Obtain a sample of sale order and trace it back to purchase
order placed by customer to ensure order process exist
Trace Forward;
Select a sample of sale order and check whether goods has
been delivered by inspecting GDN.
A Review, Authority & - Inspect Sale order/ Purchase Order and trace the name
Approved of customer/supplier in authorized customer/supplier
list.
- Inspect sale order to authorized price list
- Review Bank/Supplier/Debtor reconciliation and ensure
they are prepared monthly.
- Select a sample of monthly exception report and ensure
they are review and approved by relevant authority

For further details kindly contact Ali Sabri 923128408814

Study Smart with SAS
For detail;
Kindly contact
Ali Sabri; 0312-8408814

F Financial Limit of authority - Obtain a sample of sale order/purchase order and
R Reconciliation
-
Review the monthly payslips on sample basis and they
are signed and approved by Payroll head.
check whether order are duly approved by relevant
higher authority(Sale Manager/Supply Chain Manager).
- Review the Debtor/Bank/Supplier reconciliations to
ensure that they are being prepared and reviewed on a
regular basis by a responsible official.
- Re-perform a sample of the reconciliations to ensure
that they have been carried out appropriately and
discrepancies investigated

One more trick;

For every document which is generated in a process are required to be

a. Authroized by relevant authority

b. Approved by preparer
c. Sequentially prenumbered

For eg documents created in Sale Process:

1. Sale order
2. Sale invoice
3. Credit Limit
4. Good dispatch note
5. Sale invoice
6. Credit Invoice (In case of return)

Kindly note these are just a summary and trick to remember and quote things in paper. However to
ensure you secure good marks and have good knowledge read completely the Control chapter and
understand the basis behind it.

For further details kindly contact Ali Sabri 923128408814