Match each of the 8 different types of independent Audit Evidence Discussed by the Arens Auditing Text with the best practical example described below:

8 TYPES OF EVIDENCE

1 Physical Examination 5. Inquiries of Client

2 Confirmation 6. Recalculation

3 Inspection 7. Re-performance

4 Analytical procedures 8. Observation

PRACTICAL EXAMPLES OF EVIDENCE

Example (1) The auditor selects a sample of customer orders processed during the year and examines each to determine whether the clients credit extension policy was properly applied.

Example (2) The auditor selects a sample of sales invoices processed by the client during the year and verifies that each was correctly totaled ( i.e., footed) by the client.

Example (3) The auditor calculates the clients inventory turnover for the current year undergoing audit and compares it the turnovers calculated for the previous five years.

Example (4) The auditor obtains the clients permission to correspond (i.e., by mail) with a sample of the clients customers about the accuracy and legitimacy of their year-end accounts receivable balance due to the client.

Example (5) The auditor selects a sample of items entered into accounts payable during the year and then inspects the clients cancelled checks for these items to determine that they were accurately valued and legitimately paid for.

Example (6) The auditor conducts a surprise inspection of manufacturing employees arriving for work and clocking in to determine that the clients internal controls related to time keeping are functioning properly.

Example (7) The auditor interviews the clients CEO to determine if he/she is aware of, or suspects that fraudulent acts may have been committed by subordinates during the period covered by the audit.

Example (8) Five representatives of the independent audit firm are present to observe the taking of the clients annual physical inventory. The 5 audit representatives verify a sample of the physical inventory counts conducted by clients employees and tour the clients plant site to determine that the physical inventory is complete.