nale del ternal evidence. 7-26 (OBJECTIVE 7-4) The following are examples of audit procedures: 1. Calculate the ratio of sales commission expense to sales as a test of sales commissions. 2. Review the accounts receivable with the credit manager to evaluate their collectibility. e and amor 5 671 on deposia 3. Compare a duplicate sales invoice with the sales journal for customer name an 4. Obtain a written statement from a bank stating that the client has $15.671 and liabilities of $500,000 on a demand note. 5. Add the sales journal entries to determine whether they were correctly totale 0. Count a sample of inventory items and record the amount in the audit files 7. Obtain a letter from the client's attorney addressed to the CPA firm statir attorney is not aware of any existing lawsuits. 8. Extend the cost of inventory times the quantity on an inventory listing to test w caled. m stating that the no to test whether he amount of the ce coverage on reasonableness of at to fill out a it is accurate. 9. Obtain a letter from an insurance company to the CPA firm stating the amount fire insurance coverage on buildings and equipment. 10. Examine an insurance policy stating the amount of the fire insurance cover buildings and equipment. 11. Calculate the ratio of cost of goods sold to sales as a test of overall reasonablen gross margin relative to the preceding year. 12. Obtain information about internal control by requesting the client to fill questionnaire. 13. Trace the total in the cash disbursements journal to the general ledger. 14. Watch employees count inventory to determine whether company procedures a being followed. 15. Examine a piece of equipment to make sure that a major acquisition was actually received and is in operation. 16. Examine corporate minutes to determine the authorization of the issue of bonds. 17. Obtain a letter from management stating that there are no unrecorded liabilities. 18. Review the total of repairs and maintenance for each month to determine whether any month's total was unusually large. Classify each of the preceding items according to the eight types of audit evidence: (1) phys. ical examination, (2) confirmation, (3) inspection, (4) analytical procedures, (5) inquiries of the client, (6) recalculation, (7) reperformance, and (8) observation. 2-27 (OBJECTIVE 7-4) As auditor of the Star Mouf ial balance talo