(Audit procedures and evidence)Avariety of specific audit procedures for obtaining audit

evidence are as follows.

1. Inspect and count securities on hand.

2. Confirm inventories stored in public warehouses.

3. Obtain written report from a chemical engineer on grades of gasoline held as inventory

by an oil company.

4. Recompute depreciation charges.

5. Learn about possible lawsuit in conversation with client's legal counsel during luncheon.

6. Compute and compare gross profit rates for the current and preceding years.

7. Examine certificates of title to delivery trucks purchased during the year.

8. Obtain letter from management on the pledging of assets under loan agreements.

9. Vouch sales journal entries to sales invoices.

10. Observe the client's count of cash on hand.

11. Trace "paid" checks to check register entries.

12. Use computer to scan file to determine that all documents in a numbered series have

been accounted for.

Required

a. Indicate (1) the type of evidence obtained by each procedure and (2) the assertion or

assertions to which it pertains.

b. List by number the types of evidence that are (1) obtained directly from the independent

sources outside the enterprise and (2) obtained by the auditor's direct personal

knowledge.