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ACCA Strategic Professional · Advanced Audit and Assurance (International) · The audit of performance information (pre-determined objectives) in the public sector

In auditing the reported number of households connected to clean water by a municipal water department, the auditor wants evidence that the reported figure is complete, meaning no connections were omitted. Which procedure is most directly responsive to this assertion?

The most responsive procedure is to select work orders and meter records from independent sources and trace them to the reported total to identify omitted connections. Testing from the reported list addresses existence rather than completeness, and recalculation or representations do not address omissions.

  1. ASelect a sample of reported connections and inspect installation records and site evidence
  2. BCompare a sample of installation work orders and meter records to the reported total to find connections not includedCorrect
  3. CRecalculate the percentage achieved using the reported total and the target
  4. DObtain management's representation that the figure is accurate

Explanation

Completeness is tested by starting from an independent population (work orders, meter records) and tracing to the report, looking for omissions. Sampling from the reported list tests occurrence or existence, not completeness. Recalculation tests arithmetic only, and a representation is not sufficient evidence alone.

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