General Balance-Related Audit Objectives Existence Completeness Classification Cutoff Detail tie-in Accuracy Realizable value Rights and obligations Presentation a. Identify the type of audit evidence used for each audit procedure. b. Identify the general balance-related audit objective or objectives satisfied by each audit procedure. You can use the table below to show your work. AUDIT PROCEDURE 1. Trace selected quantities from the inventory list to the physical Inventory to make sure that it exists and the quantities are the same 2. Compare the quantities on hand and unit prices on this year's inventory count sheets with those in the preceding year as a test for large differences. 3. Read the footnote disclosures related to the company's accounting policies for valuing inventory to make sure the information provided correctly reflects the method used to value inventory 4. Test the extension of unit prices times quantity on the inventory list for a sample of items, and compare the total to the general ledger. 5. Send letters directly to third parties who hold the client's inventory, and request they respond directly to the auditor. 6. Question operating personnel about the possibility of obsolete or slow-moving inventory. Page 23 a) TYPE OF AUDIT EVIDENCE b) BALANCE- RELATED AUDIT OBJECTIVE