$16-30$

The following are audit procedures in the sales and collection cycle. For each procedures, indentify the type of audit evidence. Then, identify whether the procedure is a Substantive Analytical Procedure $($SAP$),$ Test of Control $($ToC$),$ Substantive Test of Transaction $($STOT$),$ or a Test of Details of Balances $($TDB$).$ Finally, list the appropriate objective$($s$)$ for each procedure, taking care to distinguish between transaction related objectives and balance related objectives.

Procedure Type of Evidence Type of Test Objective$($s$)$

$1.$ Foot the aged trial balance using audit software and compare the total with the general ledger.

$2.$ Match the sales invoices with subsequent cash receipts using audit software.

$3.$ Examine a sample of customer orders and see whether each has a credit authorization.

$4.$ Compare the date on a sample of shipping documents a few days before and after the balance sheet date with related sales journal transactions

$5.$ Compute the ratio of allowance for uncollectible accounts divided by accounts receivable and compare with the ratio for previous years.

$6.$ Discuss with the sales manager whether any sales allowances have been granted after the balance sheet date that may apply to the current period.

$7.$ Observe whether the controller makes and independent comparison of the total in the general ledger with the trial balance of accounts receivable.

$8.$ Compare the date on a sample of shipping documents throughout the year with related sales invoices and the accounts receivable database.