a) Audit tests include tests of controls and substantive procedures. Substantive procedures can be divided into substantive analytical procedures, tests of balances, tests of transactions and tests of disclosures. Required: For each test in the table below, select the type of audit test it represents. T 1 Examine the financial report to determine whether all related party loans are properly presented 2 Recalculate depreciation figure 3 Trace sales recorded in the sales journal to shipping documents 4 Examine sales invoices for initials to indicate that prices and extensions have been checked 5 Check cost of closing inventory to subsequent sales prices 6 Confirm loan balances with financial institutions
(a) Audit tests include tests of controls and substantive procedures. Substantive procedures can be divided into substantive analytical procedures, tests of balances, tests of transactions and tests of disclosures. Required: For each test in the table below, select the type of audit test it represents. T
1 Examine the financial report to determine whether all related party loans are properly presented
2 Recalculate
3 Trace sales recorded in the sales journal to shipping documents
4 Examine sales invoices for initials to indicate that prices and extensions have been checked
5 Check cost of closing inventory to subsequent sales prices
6 Confirm loan balances with financial institutions
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