c. Inspection d. Observation ANSWER: 16. When may audit procedures be performed? I - on the balance sheet date. II - prior to the balance sheet date. III - subsequent to the balance sheet date. a. I only. b. I and III only. c. II only. d. I, II, and III. ANSWER: 17. An auditor selects a sample of items recorded and traces them bac documentation. This is an example of which of the following? a. Directional testing for existence. b. Directional testing for completeness. c. Direct testing for valuation. d. Direct testing for rights