For Each of the Following Specific Audit Procedures, Indicate the Type

question 25

Essay

For each of the following specific audit procedures, indicate the type of audit evidence it is gathering: (1)inspection of records or documents, (2)inspection of tangible assets, (3)observation, (4)inquiry, (5)confirmation, (6)recalculation, (7)reperformance, (8)analytical procedures, and (9)scanning. The audit evidences can be used more than once.
a. Discussing the recording of sales discounts in the fourth quarter with the accounts receivable manager.
b. Examining sales invoices for supporting customer order and shipping documents.
c. Reviewing the accounts payable subsidiary ledger for debit balances or interest-bearing payables.
d. Sending a written request to the entity's bank requesting the cash balances in the entity's accounts and any other liability balances that the entity owes the bank.
e. Comparing the current-year accounts receivable turnover with the accounts receivable turnover for the industry.
f. Examining a new piece of equipment to ensure that a major acquisition was received and is operational.
g. Watching the entity's accounting personnel while they prelist cash receipts.
h. Footing the entity's bank reconciliation and tracing the balance per the books to the general ledger.
i. Recomputing sales price and extensions on sales invoices.
j. For a sample of sales transactions recorded in the sales journal, tracing the sales invoices back to customer orders and shipping documents.

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Definitions:

Hardline Behaviors

Actions or attitudes that are rigid, uncompromising, and often aggressive in dealing with others.

Negotiators

Individuals involved in discussions aimed at reaching an agreement or resolving a conflict between two or more parties.

Collective Agreement

A written contract negotiated between an employer and a union representing the employees, outlining terms of employment, wages, and conditions.

Union

An organization formed to protect and advance the interests of its members, typically regarding labour conditions, wages, and benefits.