4. Explain how each of the following procedures could be used in the audit of fixed assets, e.g., various types of equipment used in the business. Organize your answer as follows:

Procedure Audit Test performed Assertion(s) tested

Observation

Physical examination Inquiry

Confirmation

Examination of documents

Recomputation

Vouching

Analytical procedures

5. Businesses often have litigation against them that the auditor has to identify and adequately disclose. List the financial assertions that apply to Contingencies. For each assertion indicate two or three audit procedures that would address that assertion.

Organize you answer as follows:

Financial Statement assertion Audit procedure(s)