Below Are Five Audit Procedures,all of Which Are Tests of Transactions

question 127

Short Answer

Below are five audit procedures,all of which are tests of transactions associated with the audit of the sales and collection cycle.Also below are the six general transaction-related audit objectives and the five management assertions.For each audit procedure,indicate (1)its audit objective,and (2)the management assertion being tested.

1.Vouch recorded sales from the sales journal to the file of bills of lading.
(1)________
(2)________
2.Compare dates on the bill of lading,sales invoices,and sales journal to test for delays in recording sales transactions.
(1)________
(2)________
3.Account for the sequence of prenumbered bills of lading and sales invoices.
(1)________
(2)________
4.Trace from a sample of prelistings of cash receipts to the cash receipts journal,testing for names,amounts,and dates.
(1)________
(2)________
5.Examine customer order forms for credit approval by the credit manager.
(1)________
(2)________

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Definitions:

Operational Sex Ratio

The ratio of sexually active males to receptive females in a population at any given time, affecting mating behavior and strategy.

Two-Fold Cost of Sex

A hypothesis in evolutionary biology that suggests sexual reproduction is twice as costly as asexual reproduction, since only females contribute to the gene pool of the offspring.

Sexual Lineages

The genetic line of descent traced through mating and reproduction, typically examined through the analysis of patterns in genetic variation.

Asexual Lineages

Populations or species that reproduce without the genetic recombination processes involved in sexual reproduction.