$($a$)$ Identify the type of audit evidence used for each audit procedure.

$($b$)$ Identify the balance assertion$($s$)$ tested by each audit procedure.

Audit Procedure

a$.$ Type of Audit Evidence

b$.$ Assertion

$1.$

Using audit software, extend unit prices times quantity on the inventory list, foot the list, and compare the total to the general ledger.

$2.$

Trace selected quantities from the inventory list to the physical inventory to make sure the items exist and the quantities are the same.

$3.$

Question operating personnel about the possibility of obsolete or slow$-$moving inventory.

$4.$

Select a sample of quantities of inventory 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.

$5.$

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.

$6.$

Examine sales invoices and contracts with customers to determine if any goods are out on consignment. Examine vendors$$ invoices and contracts with vendors to determine if any goods on the inventory listing are owned by vendors.

$7.$

Send letters directly to third parties who hold the client$$s inventory and request they respond directly to us$.$