Ingrid Shalansky, an audit senior, was given the task of auditing Crabapple Ltd., an investment company. Her firm had not performed the audit before; however, from a discussion with the previous year’s auditors, she found out that the following transactions occurred during the previous year:

• Payment of debenture interest

• Accrual of debenture interest, payable at the year end

• Redemption of outstanding debentures

• Purchase of a portfolio of shares

Ingrid has been asked to detail audit procedures for this year’s audit based on the assumptions that similar transactions will occur.

Required

a. Identify a substantive procedure that Ingrid would need to perform to verify each of the above transactions, and the assertion to which each relates.

b. Indicate the type of evidence obtained from each of the procedures noted in part (a).