To test for recorded sales for which there were no actual shipments, the auditor traces from the:
A) sales journal to the bill of lading.
B) sales journal to the accounts receivable subsidiary ledger.
C) bill of lading to the supporting customer order and sales order.
D) bill of lading to the sales journal.

Question

Quizplus · Accepted Answer

Tracing from the sales journal to the bill of lading helps the auditor verify that recorded sales were actually shipped, thus addressing the risk of recording sales without actual shipments.

To Test for Recorded Sales for Which There Were No