When a sample of sales transactions recorded in the sales journal is traced back to the customer orders and shipping documents, the auditor is testing the ____________ assertion.
A) Cutoff
B) Authorization
C) Completeness
D) Occurrence

Question

Quizplus · Accepted Answer

The auditor is testing whether the sales transactions actually occurred and were properly recorded, which is the occurrence assertion. Tracing from the sales journal to the customer orders and shipping documents helps the auditor confirm that the transactions did happen as recorded in the sales journal. Cutoff assertion relates to whether transactions were recorded in the correct accounting period, authorization assertion relates to whether transactions were properly approved, and completeness assertion relates to whether all transactions were recorded.

When a Sample of Sales Transactions Recorded in the Sales