9.11 Under what circumstances would the auditor request the accounts to be adjusted for individually immaterial errors?

9.13 What is the difference between quantitative and qualitative materiality considerations?

9.15 Describe the two main alternative audit strategies that may be adopted in performing an audit.

9.19 What are the factors that affect the reliability of evidence?

9.20 Explain the differences between tracing and vouching as auditing procedures.

9.23 An auditor may perform the following three types of substantive procedures: (a) tests of details of transactions; (b) tests of details of balances; and (c) analytical procedures. Below are specific audit procedures that fall within one of these categories:

1. Reconcile supplier statements at the year-end with balances in the purchase ledger.
2. Validate a sample of sales invoices to goods despatch records held in the inventory system.
3. Review post-year-end receipts from customers to establish the extent of unpaid debts.
4. Calculate gross profit ratios for each branch of a chain of supermarkets and compare month-by-

month and prior year.

5.Obtain a schedule of asset disposals in the period and validate against supporting sale documents.

6.Attend the factory on the final day of the year to review work in progress.

7.Validate payment to equipment hire company to a copy of the lease.

8.Calculate expected payroll costs from last year's amount adjusted for staff changes and pay rise in

the year.

Required

For each procedure, explain which of the three types of substantive procedures it belongs to.

9.27 You are an audit senior and your firm audits Miningwell Ltd, a large mining company that operates all over Australia. Consider the following situations that have arisen during the audit.

1. Miningwell owns some highly specialised mining tools and equipment held at various remote regions across the country. Your firm has engaged an expert to carry out a physical audit check of the equipment and tools at each location, and to perform an independent valuation of each material asset.

2.In reviewing the account receivables of Miningwell, you realise that the majority of Miningwell'scustomers are in Indonesia and other parts of remote South-East Asia. Because of communication difficulties, direct confirmation of the accounts receivables' balances is unlikely to give satisfactoryresults.

3. During the audit, you also notice that Miningwell owns the majority of shares in related, unlisted companies in Australia.

Required

(a) Identify the key assertion(s) at risk in relation to the balances described in each of these three situations.

(b) Describe the audit procedures you would perform to gather sufficient appropriate audit evidence on each of these assertions.