Auditing and Assurance Services 1st Edition by Iris Stuart

تمرين 7

Performing substantive tests of transactions. The auditor performs substantive tests of transactions for sales revenue to determine that the sales revenue reported on the income statements is not materially misstated. For each procedure performed in the audit of the revenue process in the following list, indicate the management assertion that is tested during the audit procedure.
a. The auditor selects a sample of shipping documents and traces the documents to the sales invoices.
b. The auditor selects a sample of sales invoices and traces the documents to the shipping notices.
c. The auditor selects a sample of recorded sales from the sales journal and determines whether credit was approved for the sale.
d. The auditor selects a sample of recorded sales from the sales journal and vouches the prices on the sales invoices to an approved price list.
e. The auditor selects a sample of recorded sales from the sales journal and determines whether the amount billed equals the amount shipped.