a. Indicate whether each procedure, given below, is test of control, substantive test of transactions, substantive analytical procedure, or a test of details of balances. b. Identify the type of evidence for each procedure. 1. Select items from inventory records and examine the items in the warehouse. 2. Perform test of reasonableness on depreciation expense of equipment items taking into account their remaining useful lives, additions and disposals during the year, and compare against the amount calculated by client. 3. Send confirmations to banks with which the client does business to confirm with the cash balances, loan balances, as well as the outstanding banking facility. 4. Use audit software to foot and cross-foot the cash disbursement journal and trace totals to the general ledger. 5. Examine evidence that the customer orders have been approved for credit by the credit manager. 6. Discuss with the client's legal counsel as to the probability of losing the court case as well as the likely compensation amount for the dispute. 7. Select samples of payroll records and compute the overtime payment. 8. Observe endorsement of incoming checks by the accountant. 9. Conduct cash count for the petty cash kept in office to verify the amount counted by the accountant. 10. Inquire of the sales manager and credit manager whether there is segregation of duties regarding the credit-granting function and the sales function. 11. Compute individual manufacturing expenses divided by total manufacturing expenses, compare the results with those in previous years and note for any unusual fluctuation. Noa.b. 1 2 3 4 5 6 7 8 9 10 11