Question 24The 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.

Answer- Select a sample of recorded sales invoices and vouch to sales orders, shipping document…

Answered: The auditor is concerned that…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

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 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.

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