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For each audit procedure down the left side, select the assertion(s) across the top that the procedure is designed to test. Select as many assertions as apply to the specified audit procedure. Hint: The BEST answer has 30 boxes checked. Existence / Occurrence Completeness Accuracy Cutoff Rights/ Obligations Valuation Classification Authorization o 1 Select a sample of 25 receiving documents. Trace the receiving documents to the vendor invoices and purchases journal, comparing descriptions, amounts, dates and shipping terms for agreement. Obtain the related purchase order and check it for authorization of the purchase. Compare accounts receivable and the allowance for uncollectible accounts balances between years. Foot the accounts receivable (AR) subsidiary accounts and tie the total to the AR trial balance. Tie the total in the AR trial balance to the general ledger (GL). Tie the GL to the Balance Sheet. Compare inventory turnover between years. Select 25 different inventory items from the inventory records and locate the items in the warehouse. Count the stock for each item, make sure that your count agrees to the inventory records, and inspect the items for signs of obsolescence. Then select 25 different inventory items from the floor of the warehouse. Count the stock for each item, inspect the items for signs of obsolescence, and tie the count of each item to the quantity that is recorded in the inventory records. 0 0 0 O o O O o o o U U U U Complete a financial reporting checklist to ensure that all relevant disclosures related to inventory have been included in the notes to the financial statements. Select a sample of 50 sales transactions from the sales journal. Vouch each sales transaction to the sales invoice, bill of lading, and customer order comparing the quantities, descriptions, amounts, and date of shipment for agreement. Check for authorization of the sale. Select the last 10 bills of lading for the current fiscal year and the first 10 bills of lading for the next fiscal year. Compare dates, shipping terms, descriptions, quantities, and amounts on the bills of lading (through the sales invoice) to what is recorded in the sales journal. Check for authorization of the sale. O O o U U

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