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.

Comprehend the calculation related to the number of rights needed to purchase a new share.

Calculate the initial return investors earn on stock on the first day of trading.

Understand the different methods underwriters use to sell securities.

Define key terms related to financing and capital raising, such as venture capital and syndicate.

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Definitions:

Positive Nominations

A method used in research or assessment where individuals are asked to name or identify peers who exhibit positive traits or behaviors.

Popular

Widely liked, admired, or accepted by a large number of people.

Stepfamilies

Families formed when at least one partner has children from a previous relationship, blending members into a new family structure.

Mixed Loyalties

A situation in which a person has conflicting feelings of allegiance towards different interests or people.