Below Audit Tasks $.$ Need $=>$Significant Account at RMM$($Risk of Material Misstatement $($RMM$))$ and Relevant Assertion $($ Assertions:

Existence$/$Occurrence$,$ Rights and Obligations, Completeness, Valuation$/$Accuracy$,$ Presentation and Disclosure, Cutoff$)$

$1$ Test the sales journal and establish that sales transactions are reported in the proper period.

$2$ Examine due dates of notes and bonds payable for categorization between current and long$-$term

$3$ Ascertain whether property and casualty insurance costs are properly apportioned between the asset and expense accounts

$4$ Confirm outstanding balances for notes directly with creditors

$5$ Review loan contracts for financial covenants $($i$.$e$.$ required ratios, dividend restrictions, etc..$)$

$6$ Recompute interest amounts incurred but not paid as of year$-$end

$7$ Determine that accounts receivable represent amounts owed by real customers

$8$ Examine documentation supporting significant additions recorded to equipment during the year

$9$ Test depreciation calculations for a sample of capital assets

$10$ Determine whether any securities$/$investments have been pledged as collateral by inquiring of management and reviewing board of director minutes

$11$ Compare days outstanding in inventory for this period compared to prior period$($s$)$ and to an industry average

$12$ Search for unrecorded liabilities by inquiring of management and examining transactions after year$-$end

$13$ Trace costs used to price goods to vendors invoices

$14$ Determine whether there are any restrictions on cash such as compensating balances

$15$ Obtain an aged schedule of accounts receivable from period$-$end and verify the aging of the balances