Ninja Approach for Substantive Procedures
Sr. Substantive
Assertions Areas where to use How to Use/ Explain
No Procedures
Obtain a schedule of , cast the schedule and
Agree F/S with Accuracy, agree the closing balances to the general ledger,
1 All Areas
records Completeness trial balance and draft financial
statements to ensure accuracy.
Existence, Tangible non- During the physical count, select a sample of items
Physical
2 Valuation, current assets, from and agree to the warehouse to
Verification
Completeness Inventory, Cash confirm the assets exist.
Existence, Select a sample of at year end and perform
Rights & Debtors, circularization (i.e., direct confirmation). Perform
External
3 Obligation, Creditors, Banks, alternative audit procedures in case of non-response
Confirmation Valuation & Lawyers and perform additional audit
Allocation
procedures in case of exceptions identified.
Tangible non-
current assets,
Accuracy, Ensure that balance as per and have
4 Reconciliation Inventory, Bank,
Completeness been reconciled and any difference is adjusted.
Debtors, Creditors,
Cash
Select a sample of (Invoices) recorded
Inspection/ Occurrence, throughout the year; agree them to
5 All Areas
Vouching Completeness (related supporting documents) and the ensure
the occurrence of transactions.
Inventory, Debtors,
Creditors, Accruals &
Analytical Completeness, Compare against prior years and budget and
6 Prepayments,
Procedures Occurrence investigate any significant fluctuations.
Expenses, Payroll,
Interest, Provisions.
Inventory, Debtors, Calculate and compare debtor’s turnover ratio
Valuation &
7 Aging Analysis Creditors, Accruals & with prior year and investigate unusual difference
Allocation
Prepayments. for possible understatement or overstatement.
Tangible non-
current assets, Recalculate (purchase/sales invoice,
Inventory, depreciation, amortization, P&L on disposal, cost of
8 Recalculation Accuracy
Provisions, Sales, inventory) for a sample of items and confirm its
Purchases, accuracy (e.g., correct method, rate are applied).
Expenses.
Inventory, Debtors,
Creditors, Accruals & Examine transactions after the year end to identify
Subsequent Occurrence,
9 Prepayments, whether has been adjusted, and
Clearance Completeness
Provisions, ensure value is reasonable.
Contingencies.
Select a sample of (GD/ GRN) immediately
Inventory, Debtors,
before and after year end; inspect their related
10 Cut-off Cut-off Creditors, Sales,
invoices to ensure these have been recorded in the
Purchases, Expenses.
correct accounting period.
Scan ledger to identify unusual entries, and
11 Scan Ledger Classification All areas
possible misclassification.
All areas Review the disclosure of in the draft financial
Presentation &
12 Presentation (particularly where statements and ensure it is in line with IFRS and
Disclosure
required by IFRS) laws.
Discuss with directors’ possibility and
Inquiry/ Any (depending
13 All areas reasonableness of (obsolescence or
Discuss on inquiry)
impairment or provisioning etc)
