The Auditor Would Like to Design a Test of Control

question 49

Multiple Choice

The auditor would like to design a test of control to test that shipping documents are issued in numerical order by the computer and are accounted for weekly.Which of the following typical tests of controls would be suitable?

• A)Trace sales documents issued to the sales journal and trace the daily total to the general ledger.
• B)Ask the shipping department about the process they use to issue shipping documents,paying particular attention to continuity of numerical sequence.
• C)Use computer-assisted audit testing to determine whether there are any numbers missing in the sequence (gap detection).
• D)Match shipments to the associated sales invoices.