7-28 and 7-29

CTIVE 141 the following are was dit proces priormed to say a c o-rated audit objectives as discussed in Chapter 6. The man related audit objectives from Chapter 6 are also included. action-related Audit Procedures Trace from receiving reports to vendors invoices and entries in the acquisitions Journal add the sales journal for the month of July and trace s to the neral ledger Examine expense voucher packages and related vendors invoices for polo expense account classification Observe opening of cash receipts to determine that cash recipes are promptly de posited and recorded Ask the accounts payable cerk about procedures for verifying prices, quantities und extensions on vendors invoices Vouch entries in sales journal to sales invoices and related shipping documents General Transaction-Related Audit Objectives Posting and summarization Classification Occurrence Completeness Accuracy entify the type of audit evidence used for each audit procedure Identify the general transaction-related audit objective or objectives satisfied by each audit procedure. Required 1.39 GOSTECTIVE 7-4) The following audit procedures a n d the to satisfy specific balance-related audit obiectives ascussed in Chapter The procedures assume that the auditor has obtained the inventory count sheets the list the client's inventory. The general balance-related audit objectives from Chapter 6 are also included 8888899 Audit Procedures 1. Select a sample of inventory items in the factory warehouse and trace each item to the inventory count sheets to determine if it has been included and if the quantity and description are correct. 2. Trace selected quantities from the inventory list to the physical inventory to make sure that it exists and the quantities are the same. 3. Compare the quantities on hand and unit prices on this year's inventory count sheets with those in the preceding year as a test for large differences 4. Test the extension of unit prices times quantity on the inventory list for a sample of inventory items, test foot the list, and compare the total to the general ledger 5. Send letters directly to third parties who hold the client's inventory, and request that they respond directly to the auditors camine sales invoices and contracts with customers to determine whether any goods are out on consignment with customers. Similarly, examine vendors in Voices and contracts with vendors to determine whether any goods on the inven tory listing are owned by vendors. Question operating personnel about the possibility of obsolete or slow-moving inventory General Balance-Related Audit Objectives Existence Completeness Accuracy Classification Required Detail tie-in Realisable value Rights and obligations Sentify the type of audit evidence used for each and procedure bly the general balance-related audit objective or objectives satisfied by each b. Identify the genera dit procedure T OT EVIDENCE