Samru Has Been Assigned the Sales Cycle as Part of an Audit

question 47

Essay

Samru has been assigned the sales cycle as part of an audit team.He will be evaluating several key controls in the sales cycle and conducting tests of detail for accounts receivable.Samru has been told to look at 15 customers with respect to the credit limit approval process (a test of control).Then,he has been told to use dual purpose tests for the rest of his testing.
Required:
Explain the relationship between tests of controls,dual purpose tests,and tests of details.

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Definitions:

Institutional Advertising

Involves messages that promote concepts, ideas, philosophies, or goodwill for industries, companies, organizations, or government entities.

Public Relations Manager

A professional responsible for creating and maintaining a positive public image for their organization, managing media relations, and developing communication strategies.

Positive Influence

The capacity to have a beneficial impact on the character, development, or behavior of someone or something.

Sweepstakes

A type of contest or promotion where winners are selected by chance from among the entrants, often used for marketing purposes.