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Case Study 1:
As a result of work undertaken during the planning stage and audit evidence collected for the tests of controls
stages of the audit, Robert Smith has determined that there is a low risk of material misstatement (low inherent
and control risk) for the following account balances:
1. Wages and salaries
2. Electricity
3. Repairs and maintenance
Due to the expected reliability of these controls, Robert has undertaken extensive testing of the controls
regarding these account balances, and has concluded that the controls are reliable.
Required:
Identify one substantive audit procedure for each of the account balances above that will provide sufficient
appropriate audit evidence regarding the accuracy of that account balance.
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