Wiley Practitioner's Guide to GAAS 2020. Joanne M. Flood

Review of controls over credit extension and collection Foreign currency exchange rates from newspapers, and so on Inventory Physical counts Tests of year-end shipping and receiving cutoff procedures Physical counts and confirmations Purchasing and manufacturing cost records Confirmation of inventories pledged under loan agreements, and so on Confirmation of inventories not on hand Reconciliations of physical counts with perpetual records and general ledger balances Paid vendors’ invoices Vendors’ invoices Perpetual inventory records Analytical relationship of balances to recent purchasing, production, and sales activity Consignment agreements Review of labor rates Underlying purchasing records, including purchase orders, vendors’ invoices, and receiving reports Analyses of general ledger account activity Purchase agreements and contracts Analyses of purchasing and manufacturing standard cost variances Underlying production records Review of controls over accounting for receiving, production, and shipping activities Physical observations and confirmations Open purchase commitments Subsequent sales and delivery reports Review of controls over inventory records Current market value quotations and replacement cost information Plant tour for possible excess and obsolescence Discussion with production and sales personnel Inventory turnover schedules Industry experience and trends Analytical relationship of balances to anticipated sales volume Prepaid assets and deferred charges Invoices, contracts, agreements, and other documents supporting additions to balances Analyses of general ledger account activity Documents supporting additions to balances Documents supporting additions to balances Terms of insurance policies, tax bills, and so on (current vs. noncurrent) Review of controls over accounts payable and cash disbursements Recalculation of amortization Review of subsequent transactions Recomputation of ending account balances Analytical relationship of balances to estimated future utilization of assets Discussion of realizability of deferred charges with appropriate personnel Industry experience and trends Fixed assets Physical observations Plant tour Documents supporting confirmations Documents supporting acquisitions Minutes, representations, and other information regarding management’s intention to abandon or dispose of fixed assets Documents supporting acquisitions, including authorizations in minutes, construction contracts, purchase orders, invoices, work orders, and so on Analyses of general ledger activity Lease agreements Lease agreement terms Confirmation of fixed assets pledged under loan agreements, and so on Confirmation of equipment maintained at outside locations Reconciliation of account activity to subsidiary property records Analytical relationship of fixed asset dispositions to replacements Confirmation of construction contracts payable Vouching of repair and maintenance expense accounts Review of controls over accounts payable and cash disbursements Review of controls over construction work in progress Appraisal reports, replacement cost quotations, and so on Recalculation of depreciation and amortization Analytical relationship of current year’s depreciation