The following are commonly performed tests of controls and substantive tests of transactions audit procedures in the sales and collectioncycle:1. Account for a sequence of shipping documents and examine each one to make surethat a duplicate sales invoice is attached.2. Account for a sequence of sales invoices and examine each one to make sure that aduplicate copy of the shipping document is attached.3. Compare the quantity and description of items on shipping documents with therelated duplicate sales invoices.4. Trace recorded sales in the sales journal to the related accounts receivable masterfile and compare the customer name, date, and amount for each one.5. Examine sales returns for approval by an authorized official.6. Review the prelisting of cash receipts to determine whether cash is prelisted daily.7. Reconcile the recorded cash receipts on the prelisting with the cash receipts journaland the bank statement for a 1-month period.a. Identify whether each audit procedure is a test of control or a substantive test oftransactions.
The following are commonly performed tests of controls and substantive tests of transactions
cycle:
1. Account for a sequence of shipping documents and examine each one to make sure
that a duplicate sales invoice is attached.
2. Account for a sequence of sales invoices and examine each one to make sure that a
duplicate copy of the shipping document is attached.
3. Compare the quantity and description of items on shipping documents with the
related duplicate sales invoices.
4. Trace recorded sales in the sales journal to the related accounts receivable master
file and compare the customer name, date, and amount for each one.
5. Examine sales returns for approval by an authorized official.
6. Review the prelisting of cash receipts to determine whether cash is prelisted daily.
7. Reconcile the recorded cash receipts on the prelisting with the cash receipts journal
and the bank statement for a 1-month period.
a. Identify whether each audit procedure is a test of control or a substantive test of
transactions.
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