The below are procedures that an auditor plans to perform to obtain evidence regarding the I/C or assertion identified for each F/S component*. Determine whether the planned audit procedure will provide appropriate evidence for the I/C or assertion identified. Explain your judgments. Note: This question is not asking you to suggest alternative procedures. An example of Q & A is: Question: The auditor plans to send confirmations to a clients banks to obtain evidence regarding Existence. Answer: This procedure would provide direct evidence regarding the Existence of cash because each bank will have knowledge as to whether the clients account actually exists.

a) The auditor plans to physically inspect forklifts at LGs warehouse to obtain evidence regarding Rights and Obligations.

b) The auditor plans to compare revenue at The Chicago Theatre for the past four years to current-year revenue to obtain evidence regarding Existence.

c) The auditor plans to inspect check requisitions at Harley Davidson for the controllers signature to obtain evidence regarding authorization of cash disbursements.

d) For the balance of accrued sales tax, the auditor plans to reperform preparing the sales tax return for Stans Doughnuts to obtain evidence regarding Valuation.

e) The risks of MM for BMWs accounts receivable are low. So, the auditor plans to send fewer confirmations this year than last year when the risks of MM were high.

2. Why do auditors assess C/R prior to planning and performing substantive tests?

3. Where do considering quantitative and qualitative materiality fit in the audit timeline? (Copy of audit timeline slide follows.)