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The auditor determines that each of the following objectives will be part of the company's audit. For each objective, select from the option lists provided

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The auditor determines that each of the following objectives will be part of the company's audit. For each objective, select from the option lists provided two different substantive tests that provide the best support for the audit objective. A substantive test may be used once, more than once, or not at all. expense. I 1. From the fixed assets sub-ledger, A. Request positive confirmation trace a selection of fully depreciated directly from the customer of its assets from the ledger to the balance owed to the company. manufacturing floor and check the associated identification number. B. Test that the income statement agrees to the change of assets minus J. Recalculate the year's depreciation liabilities and owner's equity. K. Review the process of assigning C. Test the aging in the accounts expected useful life to machinery with receivable trial balance. the controller and ask if any assumptions have changed. D. Trace shipping documents to the related sales invoices and orders and to entries in the sales journal and L. Foot the fixed asset sub-ledger. accounts receivable subsidiary ledger. E. Analyze the historical relationship M. Vouch additions to the property, of credit loss write-offs in comparison plant, and equipment subsidiary with sales and accounts receivable. ledger. N. Make a physical inspection of major F. Foot the accounts receivable trial property, plant, and equipment balance. caristian CLICK/TAP HERE TO SEE WORKSPACE N. Make a physical inspection of major F. Foot the accounts receivable trial property, plant, and equipment balance. acquisitions. G. Foot and crossfoot the sales o. Foot and crossfoot the purchases journal. journal. H. Identify the last number used in Year 2 and the first number used in Year 3 for prenumbered shipping P. Investigate and review cash receipts related to retirements and sales of documents and prenumbered sales invoice. Trace the respective numbers property, plant, and equipment during to postings in the sales journal and the year. accounts receivable subsidiary ledger. Audit objective Substantive test 1 Substantive test 2 fm 1. Receivables at the end of Year 2 are properly cutoff with respect to sales made in Year 2. 2. The aggregate of net receivables in the balance sheet is fairly stated at estimated net realizable value. 3. Depreciation expense is fairly stated. 4. Fixed assets included in the balance sheet exist. mm CLICK/TAP HERE TO SEE WORKSPACE>

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