According to ASA500 'Audit Evidence' - the auditor should obtain sufficient appropriate audit evidence on which to base their audit opinion.
Required:
For each audit procedure listed below, indicate:
(a) One management assertion to which it relates, and
(b) The type of audit evidence obtained by each procedure.
Audit Procedure
(a) Management Assertion
(b) Type of Evidence
Select a sample of non-current assets and inspect them. Existence (management assertion) Physical (evidence)
1. A confirmation was sent to the client's bank
2. Use CAATs to compare sales prices on a sample of sales invoices with the master price file
3. Attend and observe the client's inventory stock take.
4. Re-perform the client's ageing of accounts receivables.
5. Enquire with the company's solicitor about a possible law suit involving the audit client.
6. Inspect purchases invoices recorded after the year-end to establish proper cut-off.