To gather the evidence, which is required pertaining to the assertions, the auditor conducts procedures which have been developed and refined to meet the audit objective. The various procedures which will be conducted by the auditor will be mixed but balanced - no single procedure will supply all the evidence needed. The procedures can be described as follows:

1. Inspection

2. Observation

3. Inquiry

4. Recalculation

5. Analytical Procedures

6. Reperformance

7. External confirmation REQUIRED:

a) Discuss and explain each of the above procedures. (7 Marks)

b) Indicate whether each procedure can be applied as a substantive test, or a test of controls or both. .(6 Marks)

c) Give one example for each type of test (1 to 7 above). Your example can be a substantive test or a test of controls. (7 Marks)