The Auditor Is Concerned That a Client Is Failing to Bill

question 18

Multiple Choice

The auditor is concerned that a client is failing to bill customers for shipments. An audit procedure that would gather relevant evidence would be to

• A) select a sample of duplicate sales invoices and trace each to related shipping documents.
• B) trace a sample of shipping documents to related duplicate sales invoices.
• C) trace a sample of Sales Journal entries to the Accounts Receivable subsidiary ledger.
• D) compare the total of the Schedule of Accounts Receivable with the balance of the Accounts Receivable account in the general ledger.

---

Definitions:

Collectivism

A value system that emphasizes the importance of the group over individual achievements, promoting shared goals and responsibilities within a community.

Consumerism

The societal tendency to equate personal happiness with the purchase and consumption of material possessions.

Global Inequality

The unequal distribution of resources, opportunities, and wealth among and within countries, contributing to disparities in health, education, and living standards.

Regional-Level Inequality

Economic, social, and cultural disparities that exist between different geographical regions within a country or area, often leading to unequal opportunities and living conditions.