Question 2

Specific audit procedures undertaken to obtain audit evidence are listed below: 1 Send debtors confirmation letter to a number of the clients customers. 2 Recalculate depreciation charges. 3 Calculate gross profit rates for the current year and preceding year. 4 Discuss the potential obsolete inventory with the management. 5 Examine registration certificates for motor vehicles purchased during the year. 6 Use the computer to scan a file to determine that all documents in a number series have been accounted for. 7 Hear about a possible lawsuit in conversation with the financial controller. 8 Obtain a valuation of land held by the company interstate. 9 Observe the year-end inventory count. 10 Check a sample of repair and maintenance expenses and check if any should have been capitalised.

Required For each of the above audit procedures undertaken indicate: (a) the type of audit evidence obtained; and (b) the assertion or assertions to which it pertains.