course auditing

Apple Sauce Electronics Limited is a designer of high technology healthcare equipment. For the current financial year the CFO of Apple Sauce Electronics Limited reported the following key account balances: (a) Sales Revenue - $111 milion; (b) Gross Profit- $65 million; (c) EBIT- $43 million; (d) NOPAT-$5 million; (e) Total Current Assets - $8 million; (f) Total Net PPE - $60 milion; (g) Total Assets - $250 million; (h) Total Current Liabilities - $15 million; ) Total Interest-Bearing Debt- $185 million; and ) Total Equity S15 million. 1. Hazy Auditing Services has been the auditor of Apple Sauce Electronics Limited for the past 4 years and were recently reappointed to audit the financial statements for the current financial year. Required: Consider the following scenarios independently. Determine the type of evidence procedure that best describes the action being adopted by the audit team in each scenario.

scenario 1

The audit team noted the company has a large number of outstandling interest-bearing loans with a variety of banks and lending Institutions across the country. A number of these loans are very substantlal. The audit team leader assigned one of the audit team members to contact via mall the banks and lending Institutions to get feedback on the existence of these loans and the amount.

scenario 2

The majority of Apple Sauce Electronics Limited's property, plant and equipment are located In a single emirate of the country the firm operates In. Two members of the audit team were assigned the task of golng to the site where these assets were located to attest to each asset's existence and condition.

scenario 3

Apple Sauce Electronics Limited recorded a number of sales transactions during the last financlal year. An audit team member was required to select a random sample of the sales transactions. Another audit team member was then required to add the value of the sales of the selected sample. This resulting number was checked by the audit team leader.

evidence type

justification

please answer to the point