II. Classify each of the following according to type of audit

evidence:

A.Analytical procedures F.Inspection of Assets

B.Confirmation [i.e. Physical examination]

C.Examination of documentsG.Recalculation

or Records

D.InquiryH.Reperformance

E.ObservationI.Scanning

Procedures:

1.The auditor performs an internal control procedure (i.e. a

walkthrough) to gain an understanding of the client's

internal control system.

2.Send letters to customers asking them how much they owe the

company.

3.Foot [add] the amounts shown in the accounts receivable

subsidiary ledger.

4.Auditors review customer balances in the Accounts Receivable

Subsidiary Ledger to see if any have credit balances which

should be reclassified.

5.Ask the credit manager about the collectability of customer

accounts receivable.

6.Trace shipping documents to related sales invoices to

determine that customers are being billed.

7.As part of the Inventory Observation, check to see if items

on the inventory listing can be located in the company's

warehouse.

8. Vouch sales invoices to related shipping documents to see if

billed items were shipped.

9.The auditor tests interest expense by developing an overall

reasonableness test rather than redoing all the bond

amortization schedules.

Select only ONE letter for each of the procedures.Letters can be used more than once.

Answers

1. ____3. ____5. ____7. ____9. ____

2. ____4. ____6. ____8.____