In order to form an audit opinion, auditors must obtain sufficient appropriate audit evidence. ISA 500 identifies the types of auditing procedures that an auditor might carry out in order to obtain audit evidence.

The auditor is planning for the audit of a car accessories manufacturing business. The total assets of the business are OMR 50 Million. The nature of the store means that many items are specially ordered with special branding and promotional packaging. The company use high level technology to manufacture the car accessories for global market. The auditor believes that the financial statements are at risk of material misstatement.

Required

Considering the broad categories of types of auditing procedures below, give examples, where applicable, of specific audit procedures that could be undertaken with regard to the valuation of the investment and discuss the reliability of the evidence received from those procedures. Note that not all the categories below are applicable to this scenario.

1. Inspection.

2. Observation.

3. Confirmation.

4. Recalculation.

5. Re-performance.

6. Analytical procedures.

7. Inquiry.