a. The following are 6 examples of audit procedures: 1. Trace selected quantities from the inventory list to the physical inventory to make sure that it exists and the quantities are the same. 2. Stand by the payroll time clock to determine whether any employee purchase in more than one time. 3. Calculate the ratio of the cost of goods sold to sales as a test of overall reasonableness of gross margin relative to the preceding year. 4. Question operating personnel about the possibility of obsolete or slow-moving inventory. 5. Re-foot entries in the sales journal to determine whether they were correctly totalled by the client. 6. Obtain a written statement from the clients bank stating the clients year-end balance on deposit. Required: For each of the audit procedure, classify audit procedure according to the following types of audit evidence: (1) inspection, (2) observation, (3) enquiry, (4) confirmation, (5) recalculation, (6) re-performance, and (7) audit procedures. (6 marks)

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