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:

Complexity

relates to the state or quality of being intricate, detailed, or complicated in structure or process.

Social Influences

the effects that the words, actions, or presence of other people have on an individual's attitudes, beliefs, values, or behaviors.

Real Need

A genuine necessity or requirement that drives individuals or organizations to seek solutions or fulfillments.