Which of the following procedures would ordinarily be expected to best reveal unrecorded sales at the balance sheet date?
A)Compare shipping documents with sales invoices.
B)Apply gross profit rates to inventory disposed of during the period.
C)Trace payments received subsequent to the balance sheet date.
D)Send accounts receivable confirmation requests.

Question

Quizplus · Accepted Answer

Comparing shipping documents with sales invoices helps in identifying whether all goods shipped have been invoiced, thus revealing any unrecorded sales at the balance sheet date. This method directly checks for goods that have been shipped but not billed, which is a common cause of unrecorded sales.

Which of the Following Procedures Would Ordinarily Be Expected to Best