Assertions:	Evidence Types
Existence Occurrence Accuracy Classification Cutoff Completeness Valuation/Allocation Rights/Obligations Presentation	Inspection of documents/records Inspection of tangible assets Observation Scanning evidence Inquiry Confirmation Reperformance Recalculation Analytical Evidence

Part 2: Assume you are the audit team for the audit of Waren Sports Supply (a client with a traditional information system, which you should be familiar with). Imagine that this is the first time youve audited them, so you need to develop your own audit programs to make sure important assertions are tested for each account. Using Word, write simple substantive (i.e., no tests of controls) audit programs for each of the following three accounts: (1) Inventory, (2) Accounts Payable, and (3) Sales Revenue.

Each audit program should have three columns: The left hand column should list the nine management assertions listed at the beginning of this project. (Note that authorization is not being tested here as such is only tested as part of tests of controls). The middle column should then describe very explicitly one specific audit procedures (i.e., audit evidence) to test each management assertion. The right hand column should then indicate the evidence type(s) being used in the audit procedure.

Please note the following:

1. Remember, the assertions and evidence you choose may be related to (1) transactions or (2) account balances/details.

2. All evidence types may be used. However, inquiry may only be used once per account.

3. If an assertion is not relevant for testing the account, please note this in the middle column rather than coming up with an audit procedure.