1. One of the qualities of audit evidence is relevance, or relation to the applicable financial statement assertions. Select from the list provided the assertion that is most likely tested by each of the audit procedures. Each choice may be used once, more than once, or not at all.

Completeness

Accuracy

Rights and Obligations

Valuation and Allocation

Existence

Occurrence

Classification and Understandability

Cutoff

The auditor reviewed delinquent customers credit ratings.

The auditor confirmed accounts receivable.

The auditor vouched the recorded accounts receivable to shipping documents.

The auditor inquired of management about the possibility that the receivables had been sold or factored.

The auditor determined that a note was included describing any sales to related parties.

The auditor tested depreciation related to equipment to determine that it is generally accepted and applied consistently.

The auditor examined titles related to vehicles reported in the equipment account.

The auditor determined that equipment was displayed in the noncurrent asset category on the balance sheet.

The auditor examined purchase transactions for equipment for several days before and after year-end to determine that they were recorded in the proper year.

The auditor determined that the loss associated with the sale of treasury stock was appropriately calculated.

2.

For each of the situations, the auditor collects evidence that the economic events of the entity are fairly reflected in the financial statement assertions. Indicate by selecting from the choices provided whether the direction of testing will test for completeness, or for existence/occurrence. Completeness Existence/Occurrence

The auditor traced shipping documents to the sales journal.

The auditor vouched a sample of recorded payables to purchase orders and approved invoices.

The auditor vouched recorded receivables to bills of lading.

The auditor took a sample of trucks from the motor pool and matched each truck to the subsidiary ledger.

The auditor took a sample from the subsidiary records of recorded trucks and matched each record to the physical truck.

The auditor took a sample of the clients count of inventory and matched it to the inventory records.