PART III. (20 percent) The following audit procedures are taken from an audit program.

Example: Compare dates of receiving reports and vendors invoices with dates in the acquisitions journal.

1. Foot the outstanding checklist and deposits in transit.

2. Examine printouts of transactions rejected by the computer as having non-existent employee numbers.

3. Inquire about consignment or customer inventory included on clients premises.

4. Compare pay rates with union contract, approval by board of directors, or other sources.

5. Trace deposits in transit to subsequent period bank statement.

6. Recompute the clerical accuracy on the vendors invoices, including discounts and freight.

7. Observe whether the movement of inventory takes place during the count.

8. Review time card for employee department and job ticket for job assignment and trace through to labor distribution.

9. Examine procedures manual and observe whether unrecorded vendors invoices exist.

10. Observe whether accountant reconciles bank account.

Requirements: a. For each procedure, identify the applicable audit cycle (i.e. Sales and Collection; Acquisitions, Inventory, and Payroll);

b. For each procedure, identify the type of objective; and

c. For each procedure, identify which of the following is it:

(1) Test of control (2) Substantive test of transactions.

(3) Analytical procedure, or

(4) Test of details of balances Procedure Account Audit Objective Type of Test Example: Compare dates of receiving reports and vendors invoices with dates in the acquisitions journal. Acquisitions Timing Substantive Test of Transaction