When comparing prices and terms on a sample of sales invoices with the authorized price list and terms of trade, the auditor is testing the ________ assertion.
A)cutoff
B)authorization and accuracy
C)occurrence
D)completeness

Question

Quizplus · Accepted Answer

When the auditor compares the prices and terms on the sales invoices with the authorized price list and terms of trade, they are testing the authorization and accuracy assertion, which ensures that all transactions are authorized and accurately recorded in the financial statements. This is because the auditor is verifying that the sales are properly authorized and accurately recorded at the correct amounts and terms according to the company's policies and standards.

When Comparing Prices and Terms on a Sample of Sales