Auditors frequently refer to the terms principles and procedures Required Auditors use different types of audit procedures to gather the evidence necessary to conclude that the risk of material misstatement for each relevant assertion has been reduced to an acceptably low level Identify the type of procedure used by auditors for each of the following examples Find brokers' invoices and canceled checks showing agreement with record amounts for securities investments (2) Observe test counting of client's physical inventory taking Select a sample of shipping documents and trace them to sales invoices, sales journal recording, and posting to general ledger (4) Ask client personnel about accounting events (5) Study financial information in relation to nonfinancial information. (6) |Scan expense accounts for credit entries (7) Compare financial information with that of prior periods (8) Obtain written client representation letter (9) Scan payroll check lists for unusually large checks (10) Complete an internal control questionnaire (11) Obtain client's lawyer's letter. (12) Study predictable financial information patterns (eg, ratio (13) Analyze valuation of receivables by re-aging them by due date (14) Obtain accounts receivable confirmations (15) Compare financial information with budgets and forecasts (16) Verify existence of fixed assets by locating them. (17) Compare financial information to industry statistics (18) Recompute the client's calculation of depreciation expense analysiIS