Question

Requirement b. Identify the type of evidence for each procedure. Procedure Type of Evidence Discuss the duties of the cash disbursements clerk with him and observe whether he has responsibility for handling cash or preparing the bank 1. reconciliation. Examine the internal auditor's initials on monthly bank reconciliations as 2. an indication of whether they have been reviewed. Account for a sequence of checks in the cash disbursements journal to 3. determine whether any have been omitted. Examine vendors' invoices and other supporting documents to determine whether large amounts in the repair and maintenance account should be 4. capitalized. Inquire about the accounts payable supervisor's monthly review of a computer-generated exception report of receiving reports and purchase 5. orders that have not been matched with a vendor invoice. Foot the accounts payable trial balance and compare the total with the 6. general ledger. Analytical procedures Confirmation Documentation Inquiries of the client Inquiries of the client and observation Inspection Observation Physical examination Recalculation Reperformance 7. Confirm accounts payable balances directly with vendors. Examine vendors' invoices to verify the ending balance in accounts 8. payable.