Question
For each of the following audit procedures, identify which audit objective(s) is/are being addressed:
a. Inquiry of the client’s legal counsel as to whether there is any outstanding litigation against the client that they are aware of.
b. Taking a sample of items from the client’s inventory records and physically counting the items in the warehouse.
c. Sending confirmations to a sample of customers requesting that they confirm the balance owing to your client.
d. Taking a sample of accounts receivable and reviewing case receipts subsequent to the year-end to see if that receivable has been collected.
a. Inquiry of the client’s legal counsel as to whether there is any outstanding litigation against the client that they are aware of.
b. Taking a sample of items from the client’s inventory records and physically counting the items in the warehouse.
c. Sending confirmations to a sample of customers requesting that they confirm the balance owing to your client.
d. Taking a sample of accounts receivable and reviewing case receipts subsequent to the year-end to see if that receivable has been collected.