Situation B: In the following set of situations you must identify which type of audit evidence you would use as an auditor:

Inspection of documents, Physical Examination, Observation, Inquiries, Confirmation, Reperformance, Recalculation, and Analytical Procedures.

Evidence	Type of Audit Evidence
1. Prepare a flowchart of internal control over sales.
2. Calculate the ratio of bad debt expenses to credit sales.
3. Determine whether disbursements are properly approved.
4. Watch the accounting staff of the entity while they do the reconciliation.

5. Send a written request to the bank of the audited entity requesting the cash balance.
6. Review the totals of the financial statements made by the accounting staff of the audited company.
7. Auditors need to speak with the staff of the audited client to identify the procedure used to purchase the materials they use in the creation of their main product.
8. Confirm accounts receivable for clients.
9. Compare current financial information with comparable prior period.
10. Examine new equipment to ensure that it was received according to the purchase order requisition.