The Auditor Is Concerned That a Client Is Failing to Bill

question 42

Multiple Choice

The auditor is concerned that a client is failing to bill customers for shipments.An audit procedure that would gather relevant evidence would be to:

• A) compare the total of the schedule of accounts receivable with the balance of the accounts receivable account in the general ledger.
• B) trace a sample of sales journal entries to the accounts receivable subsidiary ledger.
• C) trace a sample of shipping documents to related duplicate sales invoices.
• D) select a sample of duplicate sales invoices and trace each to related shipping documents.

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Definitions:

Gender

A social construct related to the roles, behaviors, activities, expectations, and societal norms associated with being male or female.

Assimilation

The cognitive process in which new information is absorbed and integrated into existing knowledge frameworks or schemas.

Accommodation

in cognitive psychology, refers to the process of adjusting one's schema (mental models) to incorporate new information, as part of the learning process.

Object Permanence

The understanding that objects continue to exist even when they cannot be seen, heard, or touched, which develops in infancy.