Below Are Five Audit Procedures, All of Which Are Tests

question 123

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) ________

Understand the foundational reasons for studying Operations Management.

Recognize the primary functions and tasks within various organizations that pertain to Operations Management.

Identify significant historical figures and their contributions to Operations Management.

Discern the critical decisions and elements involved in Operations Management.

---

Definitions:

Humidity

The amount of water vapor present in the air, expressed as a percentage of the maximum amount the air can hold at a given temperature.

Temperature Shifts

Variations in temperature over a specific period, which can impact ecosystems, weather patterns, and climate.

Salty Soil

Soil with high levels of soluble salts, often leading to challenges in plant growth due to osmotic stress.

Leeward

The side sheltered from the wind, often used in reference to the direction opposite to the prevailing wind.