1. The following audit procedures were performed on an audit. The first seven audit procedures assume that the auditor has obtained the inventory count sheets that list the client's inventory. The remaining examples may not specific to the inventory account.

For each audit procedure, identify what type of evidence it is and what assertion(s) it meets. Explain your selection of assertion(s). Some procedures may meet more than one assertion. You can use either the PCAOB or ASB list of assertions. Also, in the Type of Evidence column include whether the procedure targets transactions, balances, or presentation and disclosure. Some procedures may target more than one of these.

Hint - This is a challenging, technical question. Do not read things into the procedures and just base you answers on the specifics described and don't infer any other steps even if other steps might be a logical extension of the described procedure. Be specific in your explanation to the audit procedure described. I have included one answer as an example of what I am looking for.

Audit Procedure	Type of Evidence	Assertion(s)	Explanation of How the Procedure meets the Assertion(s)
1. Vouch selected quantities from the inventory list to the physical inventory to make sure that the inventory items exist and the quantities are the same.	Reperformance targeting balances.	Existence and Accuracy	Vouching normally involves existence because an entry in the accounting records is being confirmed back to a source document or physical item, as in this case. Thus, this vouching provides evidence that the asset on the list actually exists. Since the quantities also are being compared, this procedure also provides some support for valuation and accuracy.
2. Compare the quantities on hand and unit prices on this year's inventory count sheets with those in the preceding year as a test for large differences.	Analytical Examination
3. Test extend unit prices times quantity on the inventory list, test foot the list, and compare the total to the general ledger.	Recalculation
4. Question operating personnel about the possibility of obsolete or slow-moving inventory.	Inquiry of the client

Audit Procedure		Type of Evidence	Assertion(s)	Explanation of How the Procedure meets the Assertion(s)
5. Send letters directly to third parties who hold the client's inventory requesting that they list the items and amounts of all inventory in their procession, and request that they respond directly to the auditors.		confirmation
6. Select a sample of quantities of inventory in the factory 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.		Physical examination
7. Examine sales invoices and contracts with customers to determine whether any goods are out on consignment with customers. Similarly, examine vendors' invoice and contracts with vendors to determine whether any goods on the inventory listing are owned by vendors.		Documentation
8. Examine sales invoices for the last five sales transactions recorded in the sales journal in 2015 and examine shipping documents to determine they are recorded in the correct period.

Audit Procedure		Type of Evidence	Assertion(s)	Explanation of How the Procedure meets the Assertion(s)
9. Add all customer balances in the accounts receivable trail balance and agree the amount to the general ledger.
10. Determine whether long-term receivables and related party receivables are reported separately in the financial statements.
11. For a sample of shipping documents selected from shipping records, trace each shipping document to a transaction recorded in the sales journal.
12. Determine whether all risks related to accounts receivable are adequately disclosed.
13. Examine a sample of duplicate sales invoices to determine whether each one has a shipping document attached.
14. Inquire of the client whether any accounts receivable balances have been pledged as collateral on long-term debt and determine whether all required information is included in the footnote description for long-term debt.
15. Send letters to a sample of accounts receivable customers to verify whether they have an outstanding balance at December 31, 2015

Audit Procedure	Type of Evidence	Assertion(s)	Explanation of How the Procedure meets the Assertion(s)
16. For a sample of sales transactions selected from the sales journal, verify that the amount of the transaction has been recorded in the correct customer account in the accounts receivable ledger.
17. Foot the sales journal for the month of July and trace posting to the general ledger.
18. For a sample of customer accounts receivable balances at December 31, 2015, examine subsequent cash receipts in January 2015 to determine whether the customer paid the balance due.
19. Discuss with the credit department personnel the likelihood of collection of all accounts as of December 31, 2015 with a balance greater than $100,000 and greater than 90 days old.