As a Test of Control, the Auditor Examines Sales Invoices

question 12

Multiple Choice

As a test of control, the auditor examines sales invoices for supporting documents. The relevant transaction-related audit objective is

• A) accuracy.
• B) occurrence.
• C) classification.
• D) timing.

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Definitions:

Petty Cash

A small amount of cash on hand used for minor, incidental expenses of a business to avoid writing checks.

Cash Over and Short

An accounting line item that indicates the discrepancies between the amount of cash in the register and the amount of cash according to the accounting records.

Journal Entry

A record of financial transactions in the accounting system, showing accounts affected, amounts, and whether those accounts are debited or credited.

Petty Cash Account

A modest sum of money maintained readily available for covering various minor outlays instantly.