Wally's Billboard and Sign Supply Company Limited. was founded three years ago by Walter Johnson.The company is now preparingto expand its business and has enlisted the help ofyour firm.Over the pasttwo years your firm has provided audit and assurance servicesto Wally's Billboard and Sign Supply Company.You have been assigned to help with the annual audit along with Bill Thompson, a senior auditor.Your assignment is to conduct substantive testing of the company's cash balances.Bill has already conducted tests of controls of each of the company's transaction cycles and has assessed control risks as relatively low in these cycles.He has also inquired of management regarding any restrictions imposed by third parties on the use of cash.Management assured him that there are no such restrictions, but you plan to corroborate this response using bank confirmations.The client has three bank accounts, a general, payroll and an interest bearing account.

1. Identify four evidence that you would need to conduct the substantive test procedures.Indicate the level of reliability for each evidence.
2. Describe six audit procedures you should perform to compete the substantive test over theWally's cashbalances and match them with the appropriate assertions.

(A). Auditors routinely conductanalytical proceduresin the planning, testing, and completion phases of the audit.Identify the primary and secondary purposes of performinganalytical proceduresin each phase of the audit.

(B). With reference to the Companies Act and the Professional Code of Conduct, where applicable, outline and describe the regulatory framework guidelines for the following:i.Appointment of Auditors ii.Four Principles of Auditor Independence