The following is a list of audit procedures in the sales and collection cycle. For each procedure, identify which of the following it is:

• Test of Control
• Substantive Test of Transactions
• Test of Details of Balances

Transaction-Related Audit Objective

• Occurrence
• Completeness
• Accuracy
• Posting and Summarization
• Classification
• Timing
• Presentation

Balance-Related Audit Objective

• Existence
• Completeness
• Accuracy
• Cutoff
• Detail tie-in
• Realizable Value
• Classification
• Rights and Obligations
• Presentation

For those procedures you identified as a test of control or substantive test of transactions, what transaction-related audit objective is primarily being satisfied?

For those procedures you identified as a test of details of balances, what balance-related audit objective is primarily being satisfied?

1. Review sales returns after the balance sheet date to determine whether any are applicable to the current year.

Type of procedure is

Audit objective is

related, and the objective is

2. Perform alternative procedures for nonresponses to confirmations.

Type of procedure is

Audit objective is

related, and the objective is

3. Examine sales transactions for related-party or employee sales recorded as regular sales.

Type of procedure is

Audit objective is

related, and the objective is

4. Trace the balance of accounts receivable from related parties to proper disclosure in the footnotes to the financial statements.

Type of procedure is

Audit objective is

related, and the objective is

5. Examine sales invoices for consignment sales and other shipments for which control has not been transferred.

Type of procedure is

Audit objective is

related, and the objective is

6. Compute the ratio of allowance for uncollectible accounts divided by accounts receivable and compare with the ratio for previous years.

Type of procedure is

Audit objective is

related, and the objective is

7. Observe whether the controller makes an independent comparison of the total in the general ledger with the trial balance of accounts receivable.

Type of procedure is

Audit objective is

related, and the objective is

8. Examine a sample of customer orders and see whether each has a credit authorization.

Type of procedure is

Audit objective is

related, and the objective is