A substantive test for salmay include a sample of invoicfrom the saljournal which would be vouched back to salorders or shipping documents in order to test occurrence.

Question

Quizplus · Accepted Answer

This statement is true. Vouching back from sales journal to sales orders or shipping documents is a common substantive test for testing the occurrence assertion related to sales. By selecting a sample of invoices from the sales journal and tracing them back to their corresponding sales orders or shipping documents, auditors can determine whether the sales actually occurred and were properly recorded in the accounting system.

A Substantive Test for Salmay Include a Sample of Invoicfrom