For each of the procedures listed below, do the following.

a. Indicate what assertion(s) is being audited.

b. Indicate whether the procedure is (1) acquiring an understanding of internal control (which might include some tests of controls) or (2) a substantive test.

1. Ascertaining that the cash balance is on deposit in the bank at year-end.

2. Asking the credit department personnel about the policies for writing off uncollectible accounts.

3. Observing the procedures for entering and processing inventory purchase transactions.

4. Sending written requests to customers, asking them to reply directly to the auditors as to whether or not the accounts receivable balances on the company's books are the correct amounts.

5. Recalculating the amounts shown as accumulated depreciation on property and equipment.

6. Inquiring about safeguards for the physical items of property and equipment.

7. Discussions with top management about credit-granting policies for sales made on account.

8. Examining documents near the end of the year to determine whether some purchases on credit were omitted in determining the accounts payable balance.