Which of the following audit procedures is the most effective in testing sales for understatement?
A) Analyze the aged trial balance of recorded accounts receivable.
B) Confirm recorded accounts receivable.
C) Trace a sample of shipping documents to sales invoices recorded in the sales journal.
D) Vouch a sample of recorded sales from the sales journal to shipping documents.
Correct Answer:
Verified
Q5: To be recognized, revenues must also be
Q6: The assertion that auditors will probably emphasize
Q7: Custody of inventory is transferred to the
Q8: Confirmations of accounts receivable provide the most
Q9: Scanning sales invoices for missing numbers in
Q11: The auditor maintains control of the mailing
Q12: Vouching debits from a sample selection of
Q13: A small business owner can best offset
Q14: The SEC requires all of the following
Q15: If the auditor obtains sufficient appropriate evidence
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