Which of the Following Audit Procedures Is the Most Effective

question 69

Multiple Choice

Which of the following audit procedures is the most effective in testing sales for understatement?

• A)Analyze the aged trial balance of recorded accounts receivable.
• B)Confirm recorded accounts receivable.
• C)Trace a sample of shipping documents to sales invoices recorded in the sales journal.
• D)Vouch a sample of recorded sales from the sales journal to shipping documents.

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Definitions:

Information And Communication Outputs

the results or products of information and communication processes, including data reports, multimedia presentations, and other forms of disseminated knowledge.

Day-to-day Operation

The regular, routine activities carried out by a business to ensure its smooth functioning and success.

Employee Evaluation

The process of assessing the performance and productivity of employees, usually involving feedback and discussions to improve future performance.

Compensation System

A structured plan designed to provide monetary and non-monetary benefits to employees as reward for their work contribution and performance.