You are auditing Big Fresh Pty Ltd, and your manager has asked you to perform the following for the revenue account. Select a sample of sales from the sales journal and agree on the details in the journal to the sales invoices, delivery dockets and customer orders. Required: Explain which assertion for the revenue account would be addressed by this test and why? What kind of test of details is this? Any other assertion is provided by the above test apart from in part A.
You are auditing Big Fresh Pty Ltd, and your manager has asked you to perform the following for the revenue account. Select a sample of sales from the sales journal and agree on the details in the journal to the sales invoices, delivery dockets and customer orders. Required: Explain which assertion for the revenue account would be addressed by this test and why? What kind of test of details is this? Any other assertion is provided by the above test apart from in part A.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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You are auditing Big Fresh Pty Ltd, and your manager has asked you to perform the following for the revenue account.
Select a sample of sales from the sales journal and agree on the details in the journal to the sales invoices, delivery dockets and customer orders.
Required:
- Explain which assertion for the revenue account would be addressed by this test and why?
- What kind of test of details is this?
- Any other assertion is provided by the above test apart from in part A.
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