Which of the Following Audit Procedures Is an Auditor Most

question 43

Multiple Choice

Which of the following audit procedures is an auditor most likely to perform in testing controls related to management's assertion about the completeness of sales?

• A) Verify that extensions and footings on the entity's sales invoices and monthly customer statements have been recomputed.
• B) Inspect the entity's reports of pre-numbered shipping documents that have not been recorded in the sales journal.
• C) Compare the invoiced prices on pre-numbered sales invoices to the entity's authorized price list.
• D) Inquire about the entity.

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Definitions:

Corporate Beneficiary

An entity that is designated to receive benefits or proceeds from a legal instrument, such as a trust, will, or insurance policy, in a corporate context.

International Beneficiary

An individual or entity in a different country designated to receive benefits or assets from a legal arrangement or instrument.

Outstanding Mortgage

The remaining balance of a mortgage that is still owed by the borrower to the lender.

Mortgage Payment

Periodic payments made by a borrower to a lender, typically comprising both principal and interest, for the repayment of a mortgage loan.