Which of the following audit procedures is a dual-purpose test, which tests the effectiveness of internal controls as well as any material misstatements in the financial statements? A.The auditor accounts for the sequence of sales invoices. B.The auditor selects a sample of transactions in the sales journal and traces them to the relevant shipping documents. C.The auditor adds the transactions in the purchase journal and agrees to the total amount recorded in the general ledger. D.A test over the bank reconciliation. E.The auditor obtains a sample of timesheets for casual employees and checks for evidence of approval.

A dual-purpose test is an audit method that serves as a control and substantive test at the same…

Answered: Which of the following audit procedures…

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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Which of the following audit procedures is a dual-purpose test, which tests the effectiveness of internal controls as well as any material misstatements in the financial statements?

	A.	The auditor accounts for the sequence of sales invoices.
	B.	The auditor selects a sample of transactions in the sales journal and traces them to the relevant shipping documents.
	C.	The auditor adds the transactions in the purchase journal and agrees to the total amount recorded in the general ledger.
	D.	A test over the bank reconciliation.
	E.	The auditor obtains a sample of timesheets for casual employees and checks for evidence of approval.

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