You are part of the audit team that is auditing Hillsburg Hardware Co. and you have been assigned to the sales and collection business process. You are testing whether the cash received has been recorded in the cash receipts journal. (completeness objective/assertion) List two tests of controls and at least one test of transactions that you would do to satisfy yourself regarding the completeness assertion.

You are part of the audit team that is auditing Hillsburg Hardware Co. and you have been assigned to the sales and collection business process. You are testing whether the cash received has been recorded in the cash receipts journal. (completeness objective/assertion) List two tests of controls and at least one test of transactions that you would do to satisfy yourself regarding the completeness assertion.

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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Concept explainers

Audit Procedures

Audit Procedures are methods and techniques performed by the auditor to determine the quality of financial information of clients, thereby expressing an opinion on true & fair view of financial statements and entity position. They are identified and applied at the planning stage of audit after determining audit objectives, scope, approach, and risk assessment.

Question

You are part of the audit team that is auditing Hillsburg Hardware Co. and you have been assigned to the
sales and collection business process. You are testing whether the cash received has been recorded in the
cash receipts journal. (completeness objective/assertion). List two tests of controls and at least one test
of transactions that you would do to satisfy yourself regarding the completeness assertion.
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