Types of audit procedures Audit procedures are used to gatherevidence to support the auditor’s conclusions on the fairpresentation of a company’s financial statements. Procedures can beperformed manually or with automated tools, and are categorized asfollows.

1. Inspection of documents or assets
2. Observation
3. Inquiry
4. Confirmation
5. Recalculation
6. Reperformance
7. Analytical procedures
8. Scanning

Required

Listed below are audit procedures. Determine the category foreach of the audit procedures using the categorizations above. Eachcategory can be used once, more than once, or not at all.

1. Interviewing the client’s payroll manager to understand theprocess of bi-weekly payroll processing.
2. Sending a written request to a client’s bank regarding cashbalances and loans held at the bank.
3. Verifying that the accounts payable subsidiary ledgerreconciles with the total in the general ledger.
4. Using a drone to capture video of a company’s large factoryfacility, including machinery and equipment used inoperations.
5. Watching, via a teleconferencing platform, a client’s employeescount inventory at the end of the month.
6. Using spreadsheet software to develop a graph showing therelationship of a client’s revenue over time compared to availableretail shelving space.
7. Watching employees in the mailroom separate remittance advicesfrom checks received and documenting the checks received in a filethat is reviewed daily by a supervisor.
8. Verifying calculations prepared by the client related to salestaxes that must be remitted to the local taxing authority.