Discuss the audit objectives for auditing income tax accounts (10 points).

3. Following are commonly performed tests of controls and substantive tests of transactions audit procedures (20 points):

Required:

(a) Identify whether each audit procedure is a test of control or a substantive test of transactions.

(b) Identify the type of evidence used for each audit procedures, such as analytical procedures, documentation, confirmation, observation, physical examination, and reperformance,

Procedure:	Type of Test	Type of evidence
1. Reconcile the recorded cash receipts on the prelisting with the cash receipts journal and the bank statement for a 1-month period.
2. Examine sales returns for approval by an authorized official.
3. Compare the quantity and description of items on shipping documents with the related duplicate sales invoices.
4. Review the prelisting of cash receipts to determine whether cash is prelisted daily.