Auditing & Assurance Services 6th Edition by Timothy Louwers

تمرين 27

An audit team is auditing sales transactions. One step is to vouch a sample of debit entries from the accounts receivable subsidiary ledger back to the supporting sales invoices. The purpose of this audit procedure is to establish that
A) Sales invoices represent bona fide sales.
B) All sales have been recorded.
C) All sales invoices have been properly posted to customer accounts.
D) Entries in the accounts receivable subsidiary ledger were properly invoiced.
Use the following information to answer questions 7.38 and 7.39:
An auditor noted that client sales increased 10 percent for the year. At the same time, Cost of Goods Sold as a percentage of sales had decreased from 45 percent to 40 percent and year-end accounts receivable had increased by 8 percent.