Question

Identify the type of audit evidence used for each audit procedure.

Identify the general transaction-related audit objective or objectives satisfied by each audit procedure.

Audit procedure:

Examine expense voucher packages and related vendors' invoices for approval of expense account classification.

a) Type of Audit Evidence: Confirmation; Transaction-Related Audit Objective: Existence.
b) Type of Audit Evidence: Inspection of Documents; Transaction-Related Audit Objectives: Classification and Accuracy.
c) Type of Audit Evidence: Observation; Transaction-Related Audit Objective: Completeness.
d) Type of Audit Evidence: Analytical Procedures; Transaction-Related Audit Objective: Accuracy.

Answer 1

The audit procedure of examining expense voucher packages and related vendors' invoices uses Inspection of Documents as the type of audit evidence, satisfying the Classification and Accuracy transaction-related audit objectives.

Step-by-step explanation:

When it comes to identifying the type of audit evidence and the general transaction-related audit objectives satisfied by each audit procedure, one such procedure is the examination of expense voucher packages and related vendors' invoices for approval of expense account classification. The type of audit evidence used here is Inspection of Documents; this involves the auditor physically examining the documents to verify their authenticity and to see if they have been properly approved. The transaction-related audit objectives that this satisfies are Classification and Accuracy. Classification ensures that transactions are recorded in the correct accounts, while accuracy verifies that transactions are recorded at the correct amounts.