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For Each of the Following Potential Misstatements, Provide One Potential

question 136

Essay

For each of the following potential misstatements, provide one potential audit test that could be used to detect the misstatement.
• sales included in the journals for which there was no shipment
• sale recorded more than once
• shipments made to nonexistent customers and recorded as sales


Definitions:

Proposition

An expression of some truth or principle presented for acceptance or rejection.

Term

An expression or word used in logic or mathematics to represent a specific concept, quantity, or entity.

Quito

The capital city of Ecuador, known for its well-preserved historical center and high elevation.

Ecuador

A country on the northwestern coast of South America, known for its diverse landscape encompassing Amazon jungle, Andean highlands, and the wildlife-rich Galápagos Islands.

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