You have been assigned to the audit of Interappliance Inc., a manufacturer of a variety of high-end wireless devices. The preliminary risk assessment for accounts receivable/sales set inherent risk at high and internal control risk at low.

Below is an excerpt for the accounts receivable/sales audit program:

1.Select 25 accounts over $100,000 and confirm balances with customers.

2.Compare the allowance for uncollectible accounts as a percentage of accounts receivable with previous years.

3.Inquire of management whether there are notes from related parties included in trade receivables.

Required:

For each of the above audit procedures:

• State the relevant balance-related audit objective(s) (1 mark each)
• State the type of audit evidence being used (1 mark)
• Assess the quality of audit evidence (high, moderate or low) (1/2 mark). Justify your response. (1/2 mark).Use the table below and on the next page to answer the question.

Audit Procedure?

Balance-related objective(s)?

Type of evidence?

Quality of audit evidence (high, moderate or low) Why?