There are nine specific actions an auditor can undertake to collect evidence. Identify each action and provide an example

Answer 1

Types of Audit Procedure (examples in italics)
Inspection of documentation
Examining a client document for evidence of authorization
Inspection of assets
Physically examining a client's equipment
Observation
Looking at a process or procedure, such as observing the client use of a restricted access area
External confirmation
Obtaining a direct written response to the auditor from a third party, such the client's customers, confirming the amount owed to the client
Recalculation
Checking the mathematical accuracy of a document or record, such as an inventory count sheet
Reperformance
Independently performing procedures or controls that were originally performed by the client, such as reperforming a bank reconciliation
Analytical procedures
Analyzing plausible relationships among both financial and non-financial data
Scanning
Performing a type of analytical procedure which involves reviewing accounting data to identify significant or unusual items, such as examining a credit balance in an account that typically has a debit balance
Inquiry
Seeking information of persons within or outside of the client organization, such as communicating with the CFO or general counsel about changes in accounting policy