The following is a description of an audit procedure performed to satisfy a specific audit objectives related to management assertions.

PROCEDURE: Read the footnote in the most recent interim financial statements for information regarding the monetary losses from resolution of a lawsuit that was still pending at year-end. The footnote in the year-end financials indicates that the likelihood of a loss is remote.

Required:

1. Identify the type of audit procedure (I  XI) described;

I. Footing II. Inquiry III. Vouching IV. Examination/Inspection of Documents

V. Confirmations VI. Analytical Procedures VII. Reperformance VIII. Recalculation

IX. Observation X. Tracing XI. Subsequent Events 

2. Identify the related audit objective(s) (A-E) satisfied by each procedure. 

A. Existence or Occurrence 

B. Rights and Obligations 

C. Completeness 

D. Valuation and Allocation 

E. Presentation and Disclosure 

ANSWER HERE:

1. 

2. 

Enter only one answer for parts 1 and 2, do not use special characters like periods, capitalization is unimportant.