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:

Trace from receiving reports to vendors' invoices and entries in the acquisitions journal.

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

Answer 1

The audit procedure of tracing from receiving reports to vendors' invoices and acquisition journal entries uses Inspection of Documents as the type of audit evidence and satisfies the Completeness and Accuracy audit objectives.

Step-by-step explanation:

The type of audit evidence used for tracing from receiving reports to vendors' invoices and entries in the acquisitions journal is Inspection of Documents. This procedure involves examining records or documents, whether internal or external, in paper form, electronic form, or other media. The purpose of this procedure is to verify that the recorded transactions have occurred (existence) and that they are complete and accurately recorded. Therefore, the transaction-related audit objectives that are satisfied by this audit procedure are Completeness and Accuracy. These objectives ensure that all transactions that should have been recorded have been captured (Completeness) and that the amounts recorded are correct (Accuracy).