ISA: 500 Audit evidence requires the auditor to obtain sufficient, appropriate evidence to be able to draw reasonable conclusions on which to base the audit opinion. That evidence should be relevant to the financial statements assertions.

Required:

i) Explain the main assertions about account balances and provide an example of each one by reference to the audit of trade receivables.

ii) Identify FIVE (5) of the seven main audit testing procedures (for example inspection) and give an example of how each might be used in the audit of plant and machinery. State the assertion that is being tested in each case.