Below Are Five Audit Procedures, All of Which Are Tests

question 73

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:

Sensitive Issue

A matter or subject that requires careful handling due to its potential to provoke strong emotions or controversy.

Divorce

The legal dissolution of a marriage by a court or other competent body.

Infidelity

The act of being unfaithful or having an affair outside a committed relationship, violating the mutually agreed-upon rules or boundaries.

Transcribe

To convert spoken language into written or printed form, or to transfer music, data, or other content from one medium to another.