For each of the audit procedures listed in Problem 5- 32, identify the category (assertions about classes of transactions and events or assertions about account balances) and the primary assertion being tested.

In Problem 5- 32

(1) Inspection of records or documents,

(2) Inspection of tangible assets,

(3) Observation,

(4) Inquiry,

(5) Confirmation,

(6) Recalculation,

(7) Re-performance,

(8) Analytical procedures, and

(9) Scanning.

a. Sending a written request to the entity’s customers requesting that they report the amount owed to the entity.

b. Examining large sales invoices for a period of two days before and after year- end to determine if sales are recorded in the proper period.

c. Agreeing the total of the accounts receivable subsidiary ledger to the accounts receivable general ledger account.

d. Discussing the adequacy of the allowance for doubtful accounts with the credit manager.

e. Comparing the current- year gross profit percentage with the gross profit percentage for the last four years.

f. Examining a new plastic extrusion machine to ensure that this major acquisition was received.

g. Watching the entity’s warehouse personnel count the raw materials inventory.

h. Performing test counts of the warehouse personnel’s count of the raw material.

i. Obtaining a letter from the entity’s attorney indicating that there were no lawsuits in progress against the entity.

j. Tracing the prices used by the entity’s billing program for pricing sales invoices to the entity’s approved price list.

k. Reviewing the general ledger for unusual adjusting entries.