An auditor would test control over the objective of the occurrence of sales transactions by sampling recorded revenues and tracing them back to invoices and shipping documents.

Question

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This is a valid testing method for evaluating the control over the occurrence of sales transactions. By tracing recorded revenues back to supporting documents such as invoices and shipping documents, the auditor can verify that the transactions are valid and have actually occurred.

An Auditor Would Test Control Over the Objective of the Occurrence