Professional Documents
Culture Documents
EXAMPLES
TYPES OF AUDIT EVIDENCE
Count petty cash on hand
1. Physical examination
Examine fixed asset additions
Examples:
check request form
receiving report
payroll time card
adjusting journal entry
Examples:
vendor's invoice
cancelled check
cancelled note
validated deposit slip
a. b.
BALANCE-
TYPE OF RELATED
AUDIT PROCEDURE AUDIT EVIDENCE AUDIT OBJECTIVE
1. Test extend unit prices times Reperformance Detail tie-in
quantity on the inventory list,
test foot the list and compare
the total to the general ledger.
2. Trace selected quantities from Physical examination Existence and
the inventory list to the physical Accuracy
inventory to make sure that it
exists and the quantities are the
same.
3. Question operating personnel Inquiry of the client Realizable value
about the possibility of obsolete
or slow-moving inventory.
4. Select a sample of quantities of Physical examination Completeness and
inventory in the factory Accuracy
warehouse and trace each item
to the inventory count sheets to
determine if it has been included
and if the quantity and
description are correct.
5. Compare the quantities on hand Analytical procedures Accuracy
and unit prices on this year's
inventory count sheets with
those in the preceding year as a
test for large differences.
a. b.
BALANCE-
TYPE OF RELATED
AUDIT PROCEDURE AUDIT EVIDENCE AUDIT OBJECTIVE
6. Examine sales invoices and Documentation Rights
contracts with customers to
determine whether any goods
are out on consignment with
customers. Examine vendors'
invoices and contracts with
vendors to determine if any
goods on the inventory listing
are owned by vendors.
7. Send letters directly to third Confirmation Existence,
parties who hold the client's Completeness, and
inventory and request they Accuracy
respond directly to us.