Audit procedures are used to gather evidence to support the auditor’s conclusions on the fair presentation of a company’s financial statements. Procedures can be performed manually or with automated tools, and are categorized as follows.
1. Inspection of documents or assets
2. Observation
3. Inquiry
4. Confirmation
5. Recalculation
6. Reperformance
7. Analytical procedures
8. Scanning

Required
Listed below are audit procedures. Determine the category for each of the audit procedures using the categorizations above. Each category can be used once, more than once, or not at all.
a. Interviewing the client’s payroll manager to understand the process of bi-weekly payroll processing.
b. Sending a written request to a client’s bank regarding cash balances and loans held at the bank.
c. Verifying that the accounts payable subsidiary ledger reconciles with the total in the general ledger.
d. Using a drone to capture video of a company’s large factory facility, including machinery and equipment used in operations.
e. Watching, via a teleconferencing platform, a client’s employees count inventory at the end of the month.
f. Using spreadsheet software to develop a graph showing the relationship of a client’s revenue over time compared to available retail shelving space.
g. Watching employees in the mailroom separate remittance advices from checks received and documenting the checks received in a file that is reviewed daily by a supervisor.
h. Verifying calculations prepared by the client related to sales taxes that must be remitted to the local taxing authority.