Several specific audit procedures are listed below. For each item, identify the type of procedure listed and which of the assertions is being addressed by the procedure.
(a) Examine a list of investment securities held by the client’s trustee.
(b) For a sample of transactions posted to the client’s accounts payable subsidiary ledger, examine supporting purchase orders and receiving reports agreeing amounts and information.
(c) Send a written request to the client’s customer for verification of the amount owed to the client company.
(d) Examine the dealer’s invoice for a new vehicle reported on the client’s fixed assets subsidiary ledger.
(e) Ask the client’s credit manager about the collectability of certain customer account balances.
(f) Watch the client’s process of conducting the physical inventory counts.
(g) Compute interest expense on notes payable.
(h) Verify the client’s bank reconciliation by testing the proper inclusion of all reconciling items.
(i) Send written request to the client’s attorney for verification of legal matters.
(j) Compare key ratios for the current year with the same ratio results for the prior year.
(k) Trace the total of the client’s accounts payable subsidiary ledger to the general ledger.

  • CreatedJanuary 21, 2015
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