Homework Help is Here – Start Your Trial Now!
Business
Accounting
List the transaction-related audit objectives for the audit of sales transactions. For each objective, state one internal control that the client can use to reduce the likelihood of misstatements. (Click the icon to view the key internal controls.) Begin by selecting the transaction-related audit objectives for the audit of sales transactions. Then, for each audit objective, select the letter referencing one internal control control that the client can use to reduce the likelihood of misstatements. (If an input field is not used in the table, leave the input field empty; do not select a response.) Transaction-Related Audit Objectives Recorded sales are for shipments actually made to existing customers (occurrence). Existing sales transactions are recorded (completeness). Recorded sales are for the amount of goods shipped and are correctly billed and recorded (accuracy). Sales transactions are properly included in the accounts receivable master file and are correctly summarized (posting and summarization). Sales transactions are properly classified (classification). Sales are recorded on the correct dates (timing). Internal Control E H

List the transaction-related audit objectives for the audit of sales transactions. For each objective, state one internal control that the client can use to reduce the likelihood of misstatements. (Click the icon to view the key internal controls.) Begin by selecting the transaction-related audit objectives for the audit of sales transactions. Then, for each audit objective, select the letter referencing one internal control control that the client can use to reduce the likelihood of misstatements. (If an input field is not used in the table, leave the input field empty; do not select a response.) Transaction-Related Audit Objectives Recorded sales are for shipments actually made to existing customers (occurrence). Existing sales transactions are recorded (completeness). Recorded sales are for the amount of goods shipped and are correctly billed and recorded (accuracy). Sales transactions are properly included in the accounts receivable master file and are correctly summarized (posting and summarization). Sales transactions are properly classified (classification). Sales are recorded on the correct dates (timing). Internal Control E H

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
Question

Please Answer...sir

List the transaction-related audit objectives for the audit of sales transactions. For each objective, state one internal control that the client can use to reduce the likelihood of misstatements. (Click the icon to view the key internal controls.) Begin by selecting the transaction-related audit objectives for the audit of sales transactions. Then, for each audit objective, select the letter referencing one internal control control that the client can use to reduce the likelihood of misstatements. (If an input field is not used in the table, leave the input field empty; do not select a response.) Transaction-Related Audit Objectives Recorded sales are for shipments actually made to existing customers (occurrence). Existing sales transactions are recorded (completeness). Recorded sales are for the amount of goods shipped and are correctly billed and recorded (accuracy). Sales transactions are properly included in the accounts receivable master file and are correctly summarized (posting and summarization). Sales transactions are properly classified (classification). Sales are recorded on the correct dates (timing). Internal Control E H
Transcribed Image Text:List the transaction-related audit objectives for the audit of sales transactions. For each objective, state one internal control that the client can use to reduce the likelihood of misstatements. (Click the icon to view the key internal controls.) Begin by selecting the transaction-related audit objectives for the audit of sales transactions. Then, for each audit objective, select the letter referencing one internal control control that the client can use to reduce the likelihood of misstatements. (If an input field is not used in the table, leave the input field empty; do not select a response.) Transaction-Related Audit Objectives Recorded sales are for shipments actually made to existing customers (occurrence). Existing sales transactions are recorded (completeness). Recorded sales are for the amount of goods shipped and are correctly billed and recorded (accuracy). Sales transactions are properly included in the accounts receivable master file and are correctly summarized (posting and summarization). Sales transactions are properly classified (classification). Sales are recorded on the correct dates (timing). Internal Control E H
Key Internal Controls Approved unit selling prices are entered into the computer and A. used for sales. Comparison of accounts receivable master file or trial balance B. with general ledger balance. C. Credit is authorized before shipment takes place. Footnote disclosures are reviewed for relevance and D. understandability. E. Independent reconciliation of bank account. F. Internal verification of accounts payable master file contents. G. Internal verification of timely recording of transactions. H. Shipping documents are prenumbered and accounted for. 1. Use of adequate chart of accounts. Show Transcribed Text I Cash payments are properly included in the accounts receivable master file and are correctly summarized (posting and summarization). Cash payments are recorded on the correct dates (timing). Existing sales transactions are recorded (completeness). Recorded sales are for the amount of goods shipped and are correctly billed and recorded (accuracy). Recorded sales are for shipments actually made to existing customers (occurrence). Sales are recorded on the correct dates (timing). Sales transactions are properly aggregated and disclosures are relevant and understandable (presentation). Sales transactions are properly classified (classification). Sales transactions are properly included in the accounts receivable master file and are correctly summarized (posting and summarization). U T
Transcribed Image Text:Key Internal Controls Approved unit selling prices are entered into the computer and A. used for sales. Comparison of accounts receivable master file or trial balance B. with general ledger balance. C. Credit is authorized before shipment takes place. Footnote disclosures are reviewed for relevance and D. understandability. E. Independent reconciliation of bank account. F. Internal verification of accounts payable master file contents. G. Internal verification of timely recording of transactions. H. Shipping documents are prenumbered and accounted for. 1. Use of adequate chart of accounts. Show Transcribed Text I Cash payments are properly included in the accounts receivable master file and are correctly summarized (posting and summarization). Cash payments are recorded on the correct dates (timing). Existing sales transactions are recorded (completeness). Recorded sales are for the amount of goods shipped and are correctly billed and recorded (accuracy). Recorded sales are for shipments actually made to existing customers (occurrence). Sales are recorded on the correct dates (timing). Sales transactions are properly aggregated and disclosures are relevant and understandable (presentation). Sales transactions are properly classified (classification). Sales transactions are properly included in the accounts receivable master file and are correctly summarized (posting and summarization). U T
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Strengths and Weaknesses
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS