Have to answer from A to O what the procedure what the type of procedure and the assertation tested is.

Refer to Exhibit 6.5 and identify the nine types of audit procedures used as part of the cess. Following is a list of audit procedures performed. For each 6-10, audit evidence-gathering pro proced if applicable) of the audit procedure types indicated in Exhibit 6.5 and identify the primary assertion(s) being tested. Organize your answer as follows: ure, listed as (a) through (p), classify the evidence gathered according to one (or more, Procedure Type of Procedure Assertion Tested a. Calculate the ratio of cost of goods sold to sales as a test of overall reasonableness of b. Trace a sales transaction from the origination of an incoming sales order to the shipment c. Test the accuracy of the sales invoice by multiplying the number of items shipped by the the balance for cost of goods sold of merchandise to an invoice and to the proper recording in the sales journal. authorized price list to determine extended cost. Foot the total and reconcile it with the d. Select recorded sales invoices and trace the corresponding shipping documents to verify e. Examine canceled checks retumed with the client's January bank statement as support total invoiced the existence of goods shipped of outstanding checks listed on the client's December year-end bank reconciliation Perform inspection and independently count a sample of the client's marketable securities held in a safe deposit box. f. g. Tour the plant to determine that a major equipment acquisition was received and is in h. Review a lease contract to determine the items it covers and its major provisions working condition. i. Request a statement from a major customer as to its agreement or disagreement with a year-end receivable balance shown to be due to the audit client. j. Develop a spreadsheet to calculate an independent estimate of the client's warranty liability (reserve) based on production data and current warranty repair expenditures. k. Meet with the client's internal legal department to determine its assessment of the potential outcome of pending litigation regarding a patent infringement suit against the company Review all major past-due accounts receivable with the credit manager to determine whether the client's allowance for doubtful accounts is adequate L. m. Make test counts of inventory items counted by client personnel. n. Obtain information about the client's processing system and associated controls by asking the client's personnel to fill out a questionnaire o. Examine board of directors' minutes for the approval of a major bond issued during the Procedure Type of Procedure a. Calculate the ratio of the Cost of Goods Sold to Analytical procedures Sales as a test of overal reasonableness of the Assertion Tested Existence or Occurrence Assertion, Rights and Obligation Assertion, Valuation and Alocation of Goods Sold b. Trace a sales transition from origination of an Inspection of documentation incoming sales order to the shipment of merchandise to an invoice and to the proper recording in the sales joumal. mpleteness Assertion 234 Chapter .Audit Evidence Audit Procedures LO 2 Make professional judgments about the types and timing of audit procedures the auditor uses to obtain Budit evidence. Types of Audit Procedures Audit controls, and substantive procedures. Exhibit 6.5 identifies the types of audit procedures typically performed as tests of controls and substantive proce- dures, and includes relevant examples. We discuss risk assessment procedures in Chapter 7 ures fall into three categories: risk assessment procedures, tests of Inspection of Documentation Much of the audit process involves examin- ing documentation, in either paper or electronic form. Important documentation Exhibit 6.5 Types of Audit Procedures Categories of Audit Procedures Tests of controls Types of Audit Procedures Typically Performed Inspection of documentation Purpose Evaluate the operating effectiveness of controls Examples of Audit Procedures Review dlient prepared internal control documentation Select purchase transactions and review documentation for required approval Observe whether controls designed to limit access to a secure area (eg, ID card need to access storage room) are functioning Reperform a reconciliation performed by client personnel inquire of management and supervisory personnel about their control-related responsibilities Inquiry Substantive Inspection of Review shipping documents as evidence of a sale having occurred whether materialdocumentation exlst in the finan- Inspection of assets Tour the manufacturing facility and inspect cllent's equipment Obtain confirmations from client's customers regarding amount owed by the customer to the client Recalculate the total amount included on a sales invoice Estimate the expected amount of Interest income to be recorded by the client and fol- low up on significant unexpected differences between expectation and cllent's recorded balance Scan the sales journal to identify unusual transactions posted to the sales account and follow up on the transactions Inquire of clent management as to lts valua- tion of the allowance for doubtful accounts External confirmation Recalculation Analytical procedures Scanning Inquiry