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The following are audit procedures from different transaction cycles. Examine sales invoices for evidence of internal verification of prices, quantities, and extensions. Select items from

The following are audit procedures from different transaction cycles.

  1. Examine sales invoices for evidence of internal verification of prices, quantities, and extensions.
  2. Select items from Hillsburgs inventory records and examine the items in the warehouse.
  3. Use audit software to foot and cross-foot the cash disbursements journal and trace the balance to the general ledger.
  4. Select a sample of entries in the acquisitions journal and trace each one to a related vendors invoice to determine whether one exists.
  5. Examine documentation for acquisition transactions before and after the balance sheet date to determine whether they are recorded in the proper period.
  6. Inquire with Avis Zomer whether each account receivable in the aged trial balance is collectible.
  7. Compute inventory turnover for each major product and compare with that in previous years.
  8. Use audit software to foot the accounts receivable trial balance and compare the balance with the general ledger.

For each of the following audit procedures:

  1. Identify the transaction cycle being audited (8 marks)
  2. Identify the type of evidence (i.e., specific type of procedure) (8 marks)
  3. Identify if it is a test of control or a substantive test. (24 marks)
    1. For each substantive test, identify if it is a test of details or an analytical procedure.
    2. For each test of control or test of details of transactions procedure, identify the transaction-related assertion being tested.
    3. For each analytical procedure or test of details of balances procedure, identify the balance-related assertion being tested.

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