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Answer each of the following questions. 1. With respect to audit evidence, a) fully explain the following sentence: “Audit evidence must be persuasive, not convincing.” Why must an auditor keep remembering this during the collection of evidence during an audit? b) what is meant by the “nature, timing, and extent” of evidence? 2. With respect to Accounts Receivable confirmations, a) fully explain what is meant by accounts receivable confirmations. b) completely explain the two types of accounts receivable confirmations, including when each type would typically be used. c) fully describe Accounts Receivable confirmation process (what are the steps?). 3. Answer each of the following questions. a) Define analytical procedures. When are they required and when are they used? b) Why should an auditor understand the audit client’s industry and business? Explain your answer thoroughly. c) Fully explain how to perform horizontal analysis on 1. an income statement 2. a balance sheet (More than just the formula is needed) d) Fully explain how to perform vertical analysis on 1. an income statement 2. a balance sheet (More than just the formula is needed) e) Explain what must be done with the results calculated from an analytical procedure? Be specific. 4. A) Identify and explain the two major categories of audit tests. B) What is the relationship between the two major categories identified in

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