1. An external audit manager is considering evidence gathered in support of the completeness of disclosures about trade payables. The evidence gathered consists of a sample of 25 unpaid invoices from a total of 1,500 unpaid invoices that make up the trade payables balance. The suppliers who issued the invoices have confirmed in writing that they did supply goods or services and that the amounts involved remained unpaid at the date of the financial statements.

Discuss whether the evidence gathered would meet the requirement to obtain sufficient, appropriate audit evidence.

2. Audit procedure 1

The auditors obtained the bank statement of the client and for all payments received in the four weeks after the year-end they examined the relevant invoice and ledger entry to determine whether the transaction was recorded in the correct financial year.

Audit procedure 2

The auditors selected a sample of balances included in the trade receivables figure and wrote to the customer asking them to confirm the amount they owed to the audit client at the year-end. The sample was chosen by the auditor selecting the balances based upon monetary values.

Identify the ISA 500 (Audit evidence) evidence gathering technique and the sampling method used by the auditors in each of these procedures.