The overall objective in the audit of the sales and collection cycle is to evaluate whether the account balances affected by the cycle are fairly presented in accordance with accounting standards.

Question

Quizplus · Accepted Answer

The objective of the audit of the sales and collection cycle is to evaluate whether the account balances affected by the cycle are fairly presented in accordance with accounting standards. This includes assessing the accuracy, completeness, and cut-off of sales transactions, as well as the existence, valuation, and rights and obligations of accounts receivable. By conducting a thorough audit of these areas, the auditor can provide reasonable assurance that the financial statements are free from material misstatement due to errors, fraud, or other irregularities in the sales and collection cycle.

The Overall Objective in the Audit of the Sales and Collection