You are an auditor who is charged with the assessment of the risks of material misstatement (RMM) for your client. Before you can assess the RMMs at a low level, you must test the operating effectiveness of controls. You must obtain this assurance regardless of whether the client's controls are manual or automated. Select from the option list provided whether the procedure is a test of controls, a substantive test, or neither for each procedure below. Each choice may be used once, more than once, or not at all. Procedure Type 1. Inspection of purchase orders for the authorization of the purchasing agent 2. Observation of an employee's preparation of a daily deposit slip 3. Confirmation of accounts receivable with debtors 4. Inspection of the personal financial statements of the CEO and CFO 5. Observation of the taking of the physical inventory 6. Inquiries of management concerning the assigned responsibilities of employees 7. Attempts to sign onto the computer system using various passwords 8. Comparisons of financial ratios with those of industry averages 9. Comparison of the accounts receivable subsidiary ledger with the general ledger 10. Recalculation of time approved on a sample of time cards Test of controls O Substantive test Neither