Question 1 - Part c

In this lesson

1. 0:00 Introduction to Part C: Store Enhancement Audit Procedures
2. 1:12 Understanding Exam Requirements and Marking Criteria
3. 2:36 Linking Audit Procedures to Identified Risks
4. 4:47 Developing Overall Program Understanding
5. 6:43 Comparing Actual Costs to Budget and Variances
6. 8:46 Physical Inspection and Analytical Procedures
7. 10:08 Testing Sample Costs Against Supporting Documentation
8. 13:29 Verifying Labour Costs and Timesheet Evidence
9. 17:07 Using External Contracts as Corroborating Evidence
10. 20:40 Structuring Audit Procedures: Verb, What, Why Framework

About this lesson

You'll discover why generic procedures fail and how to link your audit tests directly to the specific risks of misstatement you've identified in part B of the question. The video walks you through a methodical approach to writing seven high-quality audit procedures that earn full marks. You'll see how to structure each procedure with three essential elements: a clear action verb, a specific task for the audit team, and a defined purpose. The tutor demonstrates this through practical examples including obtaining capital expenditure forecasts, comparing actual costs to budgets, physically inspecting stores, performing analytical reviews by store, testing supporting documentation, verifying labour costs against timesheets and payroll records, and reviewing signed contracts with external suppliers. Throughout the session, you'll understand the difference between scattered, generic procedures and focused, evidence-based testing. The key principle is that every procedure must address a genuine audit risk — in this case, whether costs have been correctly capitalised versus expensed, whether amounts are reasonable, and whether supporting documentation exists. You'll see how using multiple sources of evidence (invoices, contracts, timesheets, management discussion) for the same audit area strengthens your conclusion and demonstrates professional auditor judgment. By the end, you'll have a clear framework for tackling audit procedure requirements across any AA scenario, ensuring your answers are specific, purposeful, and examination-ready.

Duration: 23m