The audit procedures listed below are included in the audit program because of heightened risks of material misstatements due to fraud.

Read the requirements.

Requirement a$.$ For each audit procedure select the description of the type of fraud risk that is likely associated with the need for this audit procedure.

$($Click the icon to view the descriptions.$)$

Likely type of

Audit procedures

fraud

Use audit software to search purchase transactions to identify any with nonstandard vendor numbers

or with vendor names reflecting related parties.

Search sales databases for missing bill of lading numbers.

Use audit software to search for journal entries posted to the sales revenue account from a

nonstandard source $($other than the daily sales journal$).$

Use audit software to search cash disbursement master files for missing check numbers.

Search the accounts receivable master file for account balances with missing or unusual customer

numbers $($e$.$g$.,"99999").$

Use audit software to create a list of all credits to the repair and maintenance expense account for

follow$-$up testing.

Engage an actuarial specialist to examine management's assumptions about average length of

employment and average life expectancy of retirees used in pension accounting decisions.

Send confirmations to customers for large sales transactions made in the fourth quarter of the year to

obtain customer responses about terms related to the transfer of title and ability to return

merchandise.