The purpose of substantive testing is to verify the assertions made by management in the financial statements. An auditor does this by using various evidence gathering methods including inspection, observation, inquiry, confirmation, recalculate/reperformance and analytical procedure.

Consider the following 4 unrelated audit tests which an auditor performed in conjunction with the examination of the financial statements of a client whose fiscal year ended December 31, 2023.

Required:

For each audit test, identify the management assertion, the type of evidence, the quality of evidence (that is, high, medium or low), and provide a rationale for your choice. Assume the year end date is December 31, 2023.

a. Sent accounts receivable confirmation requests to a sample of the client's customers with unpaid balances at December 31, 2023.

b. Requested statements listing the purchases as of December 31, 2023 from a large sample of vendors with whom the client did business during 2023.

c. Verify the mechanical accuracy of the "aged" listing of the client's accounts receivable at December 31, 2023, prepared by the Chief Accountant.

d. Watched staff scan products and enter cash received.

Use the table on the following two pages to provide

Management assertion (LIST ONE ONLY)	Type of evidence (LIST ONE ONLY)	Quality of evidence (High/Moderate/Low) SELECT ONLY ONE	Provide a rationale for your choice
a.
b.

Management assertion (LIST ONE ONLY)	Type of evidence (LIST ONE ONLY)	Quality of evidence (High/Moderate/Low) SELECT ONLY ONE	Provide a rationale for your choice
c.
d.