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:

Full Commitment

A state of being fully dedicated and loyal to a cause, activity, or goal, showing no doubt or hesitation in one's support or involvement.

Managers Interaction

The process of communication and collaboration among managers within an organization to achieve business objectives.

Management Theorist

An expert or scholar who develops concepts and principles regarding how to organize, plan, direct, and control resources and activities within organizations.

Middle Management

A level of management in an organization that acts as an intermediary between executive management and operational staff, responsible for implementing organizational policies and strategies.