Response to the following problem:
The following are commonly performed tests of controls and substantive tests of transactions audit procedures in the sales and collection cycle:
1. Account for a sequence of shipping documents and examine each one to make sure that a duplicate sales invoice is attached.
2. Account for a sequence of sales invoices and examine each one to make sure that a duplicate copy of the shipping document is attached.
3. Compare the quantity and description of items on shipping documents with the related duplicate sales invoices.
4. Trace recorded sales in the sales journal to the related accounts receivable master file and compare the customer name, date, and amount for each one.
5. Examine sales returns for approval by an authorized official.
6. Review the prelisting of cash receipts to determine whether cash is prelisted daily.
7. Reconcile the recorded cash receipts on the prelisting with the cash receipts journal and the bank statement for a 1-month period.
Required:
a. Identify whether each audit procedure is a test of control or a substantive test of transactions.
b. State which of the six transaction-related audit objectives each of the audit procedures fulfills.
c. Identify the type of evidence used for each audit procedure, such as inspection and observation.