Audit Programme. The following are eight audit procedures taken from an audit programme:

1. Review board of directors’ minutes to verify approval of equipment purchases.

2. Review sales, cash receipts and sales returns cutoffs.

3. Examine the initials on vendors’ invoices that indicate internal verification of pricing, extensions (price X units) and footing by a clerk.

4. Reconcile marketable security summary schedules to general ledger.

5. Compare the balance in payroll tax expense with previous years taking into consideration any changes in payroll tax rates.

6. Count a sample of inventory and check against inventory sheets.

7. Account for a sequence of checks in the cash disbursements journal to determine whether any have been omitted.

8. Confirm accounts payable balances in writing with a sample of vendors.

Required:

A. For each of the above audit procedures, give the audit area (accounts receivable, cash, etc.) and an example of an audit objective and a financial statement assertion.

B. For each audit procedure, list a technique for gathering evidence used (inquiry of client personnel, inspection, observation, examination of documents, re-performance, confirmation, analytical procedures and physical examination.)