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 the footnotes about the company's policies for recording revenue transactions to determine whether the disclosures are understandable.

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

Answer 1

For the given audit procedures, the type of audit evidence used and the general transaction-related audit objectives satisfied are explained.

Step-by-step explanation:

The type of audit evidence used for each audit procedure and the general transaction-related audit objectives satisfied by each procedure are as follows:

1. Audit procedure: Examine the footnotes about the company's policies for recording revenue transactions to determine whether the disclosures are understandable.
   Type of Audit Evidence: Inspection of Documents
   Transaction-Related Audit Objective: Accuracy
2. Audit procedure: Observation
   Type of Audit Evidence: Observation
   Transaction-Related Audit Objective: Completeness
3. Audit procedure: Analytical Procedures
   Type of Audit Evidence: Analytical Procedures
   Transaction-Related Audit Objective: Accuracy
4. Audit procedure: Inquiry
   Type of Audit Evidence: Inquiry
   Transaction-Related Audit Objectives: Completeness and Classification