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.

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Definitions:

Audiology

The branch of science and medicine dealing with the study of hearing, balance, and related disorders.

Aural

Pertaining to the ear or the sense of hearing.

Rinne Test

A hearing test that compares air conduction to bone conduction of sound, used to diagnose types of hearing loss.

Pure Tone Audiometry

A hearing test that uses sinusoidal tones of specific frequencies to determine an individual's hearing thresholds.