For each of the procedures in the table below, indicate the type of procedure being performed inspection, observation, confirmation, recalculation/reperformance, inquiry, analysis). 1. 2. 3. Description Vouch a sample of purchase orders to receiving reports. Obtain the client's payroll deduction worksheet and perform the computation. Obtain a letter from the company's external lawyer with regard to the existence and possible outcome of existing claims at year-end. Type of Procedure Analysis
For each of the procedures in the table below, indicate the type of procedure being performed inspection, observation, confirmation, recalculation/reperformance, inquiry, analysis). 1. 2. 3. Description Vouch a sample of purchase orders to receiving reports. Obtain the client's payroll deduction worksheet and perform the computation. Obtain a letter from the company's external lawyer with regard to the existence and possible outcome of existing claims at year-end. Type of Procedure Analysis
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:For each of the procedures in the table below, indicate the type of procedure being performed
(inspection, observation, confirmation, recalculation/reperformance, inquiry, analysis).
1.
2.
3.
4.
5.
6.
7.
8.
Description
Vouch a sample of purchase orders to receiving reports.
Obtain the client's payroll deduction worksheet and perform the computation.
Obtain a letter from the company's external lawyer with regard to the
existence and possible outcome of existing claims at year-end.
Talk with the company's management to determine if obsolescence factors
are present for the production assets.
Obtain the minutes from the board of directors' meetings to determine if the
business acquisition was approved.
Ask a purchasing clerk to enter a purchase order in the accounting system
for an amount above their authorized credit limit and verify that the system
will block this purchase from being processed.
Compare the revenues and expenses with those of the prior year to identify
any unusual variances.
Ask the in-house legal counsel about the anticipated outcome of the ongoing
litigation and the estimated amount of any settlement.
Type of Procedure
Analysis
Confirmation
Inquiry
Inspection
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