In testing the sales cut-off for the EXAMPLE COMPANY in connection with an audit for the year ended October 31, 2022, you find the following information. A physical inventory was taken as of the close of business on October 31, 2022. All customers are within a three-day delivery area of the company's plant. The unadjusted balances of Sales and Inventories are P7,500,000 and P330,000, respectively. Date Shipped Oct. 20 Date Recorded Oct. 31 Nov. 2 Invoice Number ЕОВ Terms Sales Cost 2,700 6671 Destination 3,000 6672 Shipping point Oct. 31 7,500 6,000 6673 Shipping point Oct. 25 Oct. 31 5,400 3,600 Oct. 31 Oct. 29 Nov. 2 Oct. 23 Nov. 6 Nov. 3 Oct. 31 Nov. 2 6674 Destination 12,600 9,300 6675 Shipping point Oct. 31 27,600 24,000 6676 Shipping point Nov. 2 19,500 15,300 6677 Shipping point Nov. 5 22,500 17,400 6678 Destination Oct. 25 11,700 6,000 6679 Shipping point Nov. 4 25,800 24,600 6680 Destination Nov. 5 15,000 12,000

In testing the sales cut-off for the EXAMPLE COMPANY in connection with an audit for the year ended October 31, 2022, you find the following information. A physical inventory was taken as of the close of business on October 31, 2022. All customers are within a three-day delivery area of the company's plant. The unadjusted balances of Sales and Inventories are P7,500,000 and P330,000, respectively. Date Shipped Oct. 20 Date Recorded Oct. 31 Nov. 2 Invoice Number ЕОВ Terms Sales Cost 2,700 6671 Destination 3,000 6672 Shipping point Oct. 31 7,500 6,000 6673 Shipping point Oct. 25 Oct. 31 5,400 3,600 Oct. 31 Oct. 29 Nov. 2 Oct. 23 Nov. 6 Nov. 3 Oct. 31 Nov. 2 6674 Destination 12,600 9,300 6675 Shipping point Oct. 31 27,600 24,000 6676 Shipping point Nov. 2 19,500 15,300 6677 Shipping point Nov. 5 22,500 17,400 6678 Destination Oct. 25 11,700 6,000 6679 Shipping point Nov. 4 25,800 24,600 6680 Destination Nov. 5 15,000 12,000

Auditing: A Risk Based-Approach (MindTap Course List)

11th Edition

ISBN:9781337619455

Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Publisher:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Chapter11: Auditing Inventory, Goods And Services, And Accounts Payable: The Acquisition And Payment Cycle

Section: Chapter Questions

Problem 26RQSC

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