Trena selected 20 invoices to test the control that the sales clerk checks that the prices agree with the authorised price list. She found three instances where the sales clerk had not signed the ‘prices checked’ box on the invoice. The sales manager explained that the sales clerk always checks the prices, but sometimes forgets to sign the box. As the prices on all the invoices agreed with the authorised price list, Trena concluded that the control was operating satisfactorily. Required: For each of the five scenarios presented above, indicate whether you believe that sufficient appropriate audit evidence was obtained to support the conclusions reached. Give reasons for your decision
Trena selected 20 invoices to test the control that the sales clerk checks that the prices
agree with the authorised price list. She found three instances where the sales clerk had not
signed the ‘prices checked’ box on the invoice. The sales manager explained that the sales
clerk always checks the prices, but sometimes forgets to sign the box. As the prices on all the
invoices agreed with the authorised price list, Trena concluded that the control was operating
satisfactorily.
Required:
For each of the five scenarios presented above, indicate whether you believe that sufficient
appropriate audit evidence was obtained to support the conclusions reached. Give reasons for
your decision
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