II. Classify each of the following procedures according to type of audit evidence:

A. Analytical procedures F. Inspection of Assets B. Confirmation [i.e. Physical examination] C. Examination of documents G. Recalculation or Records D. Inquiry H. Reperformance E. Observation I. Scanning Procedures:

1. The auditor performs an internal control procedure (i.e. a walkthrough) to gain an understanding of the clients internal control system.

2. Check to see that a newly acquired expensive piece of equipment actually exists, and is in the companys factory.

3. Trace shipping documents to related sales invoices to determine that customers are being billed.

4. Send a letter to the lawyers for the company asking about legal matters.

5. Auditors review vendor balances in the Accounts Payable Subsidiary Ledger to see if any have debit balances which should be reclassified.

6. Compare company regional sales numbers with similar data from previous years in considering the reasonableness of this years sales amounts

. 7. Test the extensions [multiplication] and footings [addition] on a sample of sales invoices. Do not use Examination of documents.

8. Discuss the adequacy of the allowance of doubtful accounts with the credit manager. Select only ONE letter for each of the procedures.

Letters can be used more than once. Select the best answer for each procedure.

Part 3 II Answers 1. E 3. ____ 5. ____ 7. ____ 2. ____ 4. ____ 6. ____ 8. ____ help asap