Audit procedures

Match the audit procedures listed below with the type of evidence-gathering procedures that is most appropriate to be used.

Evidence-gathering procedures:

1. Recalculation
2. Analytical procedures
3. Enquiries
4. Re-performance
5. Confirmation
6. Inspection
7. Observation

1. Discussing the appropriateness of the allowance for doubtful accounts with the credit controller.
2. Performing test counts of the warehouse personnels count of the work-in-process inventory.
3. Watching the clients warehouse personnel count the raw material inventory.
4. Sending a letter to the clients bank requesting that they confirm the clients USD (United States Dollar) account balance.
5. Recalculate the clients interest expense by multiplying the closing balance of a loan with its interest rate obtained from the contract.
6. Comparing the current-year net profit percentage with the net profit percentage for the past two years.
7. Agreeing the total of the accounts payable subsidiary ledger to the accounts payable general ledger account.
8. Examining the shipping log for a period of three days before and after year end to determine whether shipments to customers are recorded in the proper period.
9. Obtaining a letter from the clients solicitor concerning litigation.
10. Discussing if inventory is actually owned by the client, or if it is instead being held on consignment from a third party with the sales manager.