Reference no: EM131046785

Audit Program. The following are eight audit procedures taken from an audit program:

1 Review board of directors' minutes to verify approval of equipment purchases

2 Review sales, cash receipts and sales returns cutoffs.

3 Examine the initials on vendors' invoices that indicate internal verification of pricing, extensions (price X units), and footing by a clerk.

4 Reconcile marketable security summary schedules to general ledger.

5 Compare the balance in payroll tax expense with previous years taking into consideration any changes in payroll tax rates. 6 Count a sample of inventory and check against inventory sheets.

7 Account for a sequence of checks in the cash disbursements journal to determine whether any have been omitted.

8 Confirm accounts payable balances in writing with a sample of vendors.

Required:

A. For each of the above audit procedures, give the audit area (accounts receivable, cash, etc.), and an example of an audit objective and a financial statement assertion.

B. For each audit procedure, list a technique for gathering evidence used (inquiry of client personnel, inspection, observation, examination of documents, reperformance, confirmation, analytical procedures and physical examination.)