The auditor is concerned that fictitious sales have been recorded. Which of the following procedures would be the best audit procedure to identify the existence of fictitious sales? Select a sample of recorded sales invoices and vouch to sales orders, shipping document (bills of lading, packing slips etc) to verify shipment of goods. Select a random sample of shipping documents and trace to sales invoices Select a sample of customer purchase orders and trace through to the generation of a sales invoice Select a sample of customer purchase orders to determine whether a valid customer exists.
The auditor is concerned that fictitious sales have been recorded. Which of the following procedures would be the best audit procedure to identify the existence of fictitious sales? Select a sample of recorded sales invoices and vouch to sales orders, shipping document (bills of lading, packing slips etc) to verify shipment of goods. Select a random sample of shipping documents and trace to sales invoices Select a sample of customer purchase orders and trace through to the generation of a sales invoice Select a sample of customer purchase orders to determine whether a valid customer exists.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question 24
The auditor is concerned that fictitious sales have been recorded. Which of the following procedures would be the best
Select a sample of recorded sales invoices and vouch to sales orders, shipping document (bills of lading, packing slips etc) to verify shipment of goods. |
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Select a random sample of shipping documents and trace to sales invoices |
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Select a sample of customer purchase orders and trace through to the generation of a sales invoice |
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Select a sample of customer purchase orders to determine whether a valid customer exists. |
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