Operating Expenses Detailed Testing
Turn a selected expense sample and supporting documents into a structured testing workpaper. Review extracted figures, match the evidence, investigate differences and prepare a conclusion for auditor review.
01 / 06
Set the engagement and materiality
02 / 06
Extract and confirm the selected sample
03 / 06
Extract and review supporting evidence
04 / 06
Match documents to sample items
05 / 06
Review testing results and exceptions
06 / 06
Draft the conclusion and record sign-off
The accountant selects the sample, confirms extracted information, resolves evidence matches, reviews exceptions and approves the conclusion.
Reconciliation of the expense population to the trial balance is performed outside this workflow.
This fictional Northstar Demo Services Ltd example uses three selected expense items totalling R18,000 excluding VAT. Two supporting invoices are supplied; the cleaning item has no invoice.
Synthetic demonstration data
01 Set the engagement, materiality and selected documents before extraction.
02 Review the three extracted sample items and trace an extracted value back to the highlighted source document.
03 Confirm the two invoice matches and document why the third item has no supporting evidence.