national Economics University

Q1/ The following are different audit procedures: 1- Trace from receiving reports to vendors' invoices and entries in the acquisitions journal. 2- Add the sales journal for the month of July and trace amounts to the general ledger. 3- Examine expense voucher packages and related vendors' invoices for approval of expense account classification. 4- Observe opening of cash receipts to determine that cash receipts are promptly deposited and recorded. vendors' invoices. 5- Ask the accounts payable clerk about procedures for verifying prices, quantities, and extensions on 6- Vouch entries in sales journal to sales invoices and related shipping documents. Required: Identify the type of audit evidence used for each andit procedure. Q2/ The following are different audit procedures: 1- Select a sample of inventory items in the factory warehouse and trace each item to the inventory count sheets to determine if it has been included and if the quality and description are correct. 2- Trace selected quantities from the inventory list of the physical inventory to make sure that it exists and the quantities are the same. 3- Compare the quantities on hand and unit prices on this year's inventory count sheets with those in the preceding year as a test for large difference. 4- Test the extension of unit prices times quantity on the inventory list for a sample of inventory items, test foot the list, and compare the total of the general ledger. 5- Send letters directly to third parties who hold the clients' inventory and request that they respond directly to the auditors. 6- Examine sales invoices and contracts with customers to determine whether any goods are out on consignment with customers. Similarly, examine vendors' invoices and contracts with vendors to determine whether any goods in the inventory listing are owned by vendors. 7- Question operating personnel about the possibly of obsolete or slow-moving inventory. Required: Identify the type of audit evidence used for each audit procedure