5 An auditor traced a sample of purchase orders and the related receiving reports to the purchases journal and the cash disbursements journal. The purpose of this substantive audit procedure most likely was to A. Verify that cash disbursements were for goods actually received. B. Test whether payments were for goods actually ordered. C. Determine that purchases were properly recorded. D. Identify unusually large purchases that should be investigated further. 7 An auditor testing long-term investments would ordinarily use analytical procedures to ascertain the reasonableness of the A. Existence of unrealized gains or losses. B. Completeness of recorded investment income. C. Valuation of trading securities. D. Classification as available-for-sale or trading securities. 9 Which of the following auditing procedures is ordinarily performed last? A. Reading of the minutes of the directors meetings. B. Confirming accounts payable. C. Testing of the purchasing function. D. Obtaining a management representation letter. 11 The letter of audit inquiry addressed to the clients lawyer will not ordinarily be A. Limited to references concerning only pending or threatened litigation with respect to which the lawyer has been engaged. B. A source of corroboration of the information originally obtained from management concerning litigation, claims, and assessments. C. Needed during the audit of clients whose securities are not registered with the SEC. D. Sent to a lawyer who was engaged by the audit client during the year and soon thereafter resigned the engagement. 13 Ajax, Inc. is an affiliate of the audit client and is audited by another firm of auditors. Which of the following is most likely to be used by the auditor of the client to obtain assurance that all guarantees of the affiliates indebtedness have been detected? A. Send the standard bank confirmation request to all of the clients lender banks. B. Obtain written confirmation of indebtedness from the auditor of the affiliate. C. Review client minutes and obtain a representation letter. D. Examine supporting documents for all entries in intercompany accounts