Below are 12 audit procedures. Classify each procedure according to the following types of audit evidence: (1) physical examination, (2) confirmation, (3) documentation, (4) observation, (5) inquiry of the client, (6) reperformance, and (7) analytical procedure.
| Type of Evidence | Audit Procedures |
| | 1. Watch client employees count inventory to determine whether company procedures are being followed. |
| | 2. Count inventory items and record the amount in the audit files. |
| | 3. Trace postings from the sales journal to the general ledger accounts. |
| | 4. Calculate the ratio of cost of goods sold to sales as a test of overall reasonableness of gross margin relative to the preceding year. |
| | 5. Obtain information about the client's internal controls by asking questions of client personnel. |
| | 6. Trace column totals from the cash disbursements journal to the general ledger. |
| | 7. Examine a piece of equipment to make sure a recent purchase of equipment was actually received and is in operation. |
| | 8. Review the total of repairs and maintenance for each month to determine whether any month's total was unusually large. |
| | 9. Compare vendor names and amounts on purchase invoices with entries in the purchases journal. |
| | 10. Foot entries in the sales journal to determine whether they were correctly totaled by the client. |
| | 11. Make a surprise count of petty cash to verify that the amount of the petty cash fund is intact. |
| | 12. Obtain a written statement from the client's bank stating the client's year-end balance on deposit. |
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