ASA500.A10 sets out the purposes for which audit tests are conducted. These include tests of controls, substantive analytical procedures, tests of details of balances, tests of details of transactions and tests of disclosures.

For each example test in the left hand columnof the Table below, write the relevant purpose in the right hand column.

Note:Apurposemay be chosen more than once; a purposemay not be applicable

Example Test	Purpose of the example test
Compare wages expense to previous year and budget.
Confirm loan balances with financial institutions.
Check cost of closing inventory (stock) to subsequent sales prices.
Recalculate depreciation figure.
Examine sales invoices for initials to indicate that prices and extensions have been checked.
Ensure sales recorded in the sales journal have been matched to shipping documents.
Examine the financial report to determine whether all related party loans are properly presented.