Audit Procedures
Discuss How Each of the Following Procedures Could

question 101

Essay

Audit procedures
Discuss how each of the following procedures could be used in the audit of fixed assets, e.g., various types of equipment used in the business.
$\begin{array} { lll } \text { Procedure } & \text { How used } &\text { Assertion(s) tested }\\\text { Observation } \\\text { Physical examination } \\\text { Inquiry } \\\text { Confirmation } \\\text { Examination of documents } \\\text { Recomputation } \\\text { Reprocessing } \\\text { Vouching } \\\text { Analytical } \\\text { Procedures }\end{array}$

---

Definitions:

Interest Rate

The amount charged by lenders to borrowers for the use of money, expressed as a percentage of the principal, per unit of time.

Loanable Funds

The money available for borrowing in the financial markets, determined by the savings behavior of individuals and institutions and the central bank's monetary policy.

Investment Spending

Investment spending refers to expenditures made by businesses or individuals on capital goods intended to be used for future production.

Present Value

The contemporary value of a future financial amount or series of cash movements, given a pre-specified rate of return.