ACCA AA Syllabus D. Audit Evidence - Revenues - Substantive procedures - Notes ^{5 / 18}

These are:

1. Compare the overall level of revenue against prior years and budget and investigate any significant fluctuations

2. Calculate the gross profit margin and compare this to the prior year and investigate any significant fluctuations

3. Select a sample of sales invoices and agree the sales prices back to the contracted rates to ensure the accuracy of invoices

4. Select a sample of credit notes raised, trace through to the original invoice and ensure invoice correctly removed from sales

5. Select a sample of trade customer orders placed and agree these to the despatch notes and sales invoices and accounting for in the sales ledger to ensure completeness of revenue.

6. Select a sample of despatch notes both pre and post year end; follow these through to sales invoices in the correct accounting period to ensure that cut-off has been correctly applied