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1. The auditor performs an internal control procedure (i.e. a walkthrough) to gain an understanding of the client's internal control system. 2. Check to see

image text in transcribed 1. The auditor performs an internal control procedure (i.e. a walkthrough) to gain an understanding of the client's internal control system. 2. Check to see that a newly acquired expensive piece of equipment actually exists, and is in the company's factory. 3. Trace shipping documents to related sales invoices to determine that customers are being billed. 4. Send a letter to the lawyers for the company asking about legal matters. 5. Auditors review vendor balances in the Accounts Payable Subsidiary Ledger to see if any have debit balances which should be reclassified. 6. Compare company regional sales numbers with similar data from previous years in considering the reasonableness of this year's sales amounts. 7. Test the extensions [multiplication] and footings [addition] on a sample of sales invoices. Do not use Examination of documents. 8. Discuss the adequacy of the allowance of doubtful accounts with the credit manager. 1. The auditor performs an internal control procedure (i.e. a walkthrough) to gain an understanding of the client's internal control system. 2. Check to see that a newly acquired expensive piece of equipment actually exists, and is in the company's factory. 3. Trace shipping documents to related sales invoices to determine that customers are being billed. 4. Send a letter to the lawyers for the company asking about legal matters. 5. Auditors review vendor balances in the Accounts Payable Subsidiary Ledger to see if any have debit balances which should be reclassified. 6. Compare company regional sales numbers with similar data from previous years in considering the reasonableness of this year's sales amounts. 7. Test the extensions [multiplication] and footings [addition] on a sample of sales invoices. Do not use Examination of documents. 8. Discuss the adequacy of the allowance of doubtful accounts with the credit manager

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