Question
For each of the audit procedures listed below, indicate which of the following types of evidence-gathering procedure are being used: 1.Inspection 2.Recalculation 3.Confirmation 4.Analytical procedures
For each of the audit procedures listed below, indicate which of the following types of evidence-gathering procedure are being used:
1.Inspection
2.Recalculation
3.Confirmation
4.Analytical procedures
5.Enquiries
6.Observation
7.Re-performance
a)Comparing the current-year gross profit percentage with the gross profit percentage for the past four years.
b)Agreeing the total of the accounts receivable subsidiary ledger to the accounts receivable general ledger account.
c)Discussing the adequacy of the allowance for doubtful accounts with the credit manager.
d)Performing test counts of the warehouse personnels count of raw material.
e)Examining a new bottling machine to ensure that this major acquisition was received.
f)Watching the clients warehouse personnel count the finished goods inventory.
g)Obtaining a letter from the clients solicitor indicating that there are no lawsuits in progress against the client.
h)Vouching the prices used by the clients billing program for pricing sales invoices to the clients approved price list.
i)Examining large sales invoices for a period of two days before and after year end to determine whether sales are recorded in the proper period.
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