The following are audit procedures::
1. Select a sample of cancelled checks and trace each one to the cash disbursements journal, comparing the name, date, and amount.
2. Compute the ratio of allowance for uncollectible accounts divided by accounts receivable and compare with previous years.
3. When the check signer's assistant writes "paid" on supporting documents, watch whether she does it after the documents are reviewed and the checks are signed.
4. Discuss with the sales manager whether any sales allowance have been granted after the balance sheet date that may apply to current period.
5. Review the acquisitions journal for large and unusual transactions.
6. Examine a sample of customer orders and see if each has a credit authorization.
7. For 20 nontangible acquisitions, select a sample of line items from the acquisitions journal and trace each to related vendors' invoices. Examine whether each transaction appears to be a legitimate expenditure for the client and that each was approved and recorded at the correct amount and date in the journal and charged to the correct account per the chart of accounts.
8. Add the columns on the aged trial balance and compare the total with the general ledger.
Required
For each procedure, identify which of the following it is:
(1) Test of Control
(2) Substantive test of transactions
(3) Analytical Procedure
(4) Test of details of balances