Which of the following is a test of controls for the transaction assertion of completeness for revenue?
A)Test a sample of sales invoices for authorized customer orders.
B)Review sales orders for proper credit approval.
C)Trace shipping documents to sales invoices and the sales journal.
D)Examine reconciliation of subsidiary ledger to general ledger control account.

Question

Quizplus · Accepted Answer

Tracing shipping documents (which represent completion of the sale) to sales invoices and the sales journal ensures that all sales have been recorded and no sales have been omitted, verifying the completeness assertion for revenue transactions. Option A tests for the authorization assertion, option B tests for the accuracy assertion, and option D tests for the valuation and allocation assertion.

Which of the Following Is a Test of Controls for the Transaction