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)________

---

Definitions:

Scientific Management

A management theory developed by F.W. Taylor aiming at improving economic efficiency and labor productivity through systematic study of work methods and processes.

Workplace Flexibility

An arrangement in a work environment that allows employees to have variable work hours, locations, or job duties to balance their work and personal life efficiently.

Technology-Driven Economy

An economy heavily influenced by technological innovation, automation, and the digital sector's growth.

Cooperation

The act of working together towards a common goal or interest, often emphasizing teamwork and mutual assistance.