Direct evidence of account balances is not needed.

Direct evidence can be obtained solely through analytical procedures.

Direct evidence can be limited to material account balances, and the extent of testing should be sufficient to corroborate the auditor's assessment of low risk.

Direct evidence should be obtained for all accounts, regardless of the auditor's assessment of control risk.

The auditor would take a sample of source documents and obtain additional supporting documents for those transactions.

The auditor would take a sample of recorded transactions and obtain supporting documentation for those transactions.

The auditor would perform a process referred to as tracing.

For a sample of items recorded in the sales journal, the auditor would obtain the related shipping documents and customer orders.

Inspection of documents, including the lease contract and recalculation of capitalized amount and current amortization.

Inspection of the leased equipment.

Confirmation of the original cost of the equipment with the lessor.

Confirmation of the current purchase price for similar equipment with vendors.

Writing off obsolete inventory prior to year-end.

A purchase transaction between an entity and its owners.

An exchange of property between an entity and a joint venture in which the entity has part ownership.

A debt-related transaction between an entity and one of its SPEs

Develop an understanding of management's process for developing the estimate.

Inspect documentation related to the pension transactions that the client has recorded.

Review transactions occurring prior to the report release date to assess the reasonableness of management estimates.

Identify sensitive management assumptions.

An audit program is used to specify the procedures to be performed in obtaining audit evidence.

An audit program is used to record the completion of each audit step.

An audit program is useful for monitoring the progress of the audit.

All of these statements describe a purpose of an audit program.