Problem 6 (10 points): Assume the audit described is relying on the internal control system to detect misstatements. Assume the test of controls show that the control system is working at an acceptable level. For the following audit procedures indicate their sequential order in the space provided. (1 = first step, 2 = second step, ...., 10 = tenth step). Step # Obtain from the client necessary communications used in forming the audit opinion. Assume the communications require substantial audit results before they can be made. Determine that each shipping order is properly cancelled so that duplicate shipments will not occur. Prepare engagement letter and have client sign. Gain a basic understanding of the internal controls surrounding sales to determine if reliance seems reasonable. A partner from outside of the local office comes in to examine working papers to determine if all necessary evidence has been collected. Determine that each reported customer account receivable appears to be collectable. Develop the audit program which details all the procedures that are expected to be completed in the course of the audit. Determine staffing needs for the audit engagement. Issue the audit report. Determine that each sales transaction has a valid customer order.