Joe is a junior accountant who is assisting you with the audit of Desk Ltd, a small manufacturing company. Joe has indicated that he has completed testing on accounts payable and sales and says he has performed the following tests:

Procedure 1 :On 30 June, Joe attended the inventory stocktake and observed that the client followed the stocktake instructions. He selected numerous items for test counting from the client's inventory sheets and all were found to be correct. Cut-off details were noted and subsequently checked and found to be treated correctly. Joe concluded that the inventory was fairly stated.

Procedure 2 :Joe selected 20 invoices to test the control that the sales clerk checks that the prices agree with the authorised price list. He found three instances where the sales clerk had not signed the 'prices checked' box on the invoice. The sales manager explained that the sales clerk always checks the prices, but sometimes forgets to sign the box. As the prices on all the invoices agreed with the authorised price list, Joe concluded that the control was operating satisfactorily

Procedure 3 :As part of his work on subsequent events since balance date, Joe noted that there were a large number of returns in July of product XLP. However, as this product was first sold in June and represented only 1 per cent of sales for the year, he concluded that the amount was immaterial and that no further work was necessary

Required:For each of the three (3) 'Procedures' above: Outline whether Joe has obtained sufficient appropriate evidence for the relevant assertions (where appropriate) pertaining to Desk Ltd. Justify your answer.