If the Objective of a Test of Details Is to Detect

question 34

Multiple Choice

If the objective of a test of details is to detect the overstatement of sales, the auditor should trace transactions from the:

• A)cash receipts journal to the sales journal.
• B)sales journal to the cash receipts journal.
• C)shipping documents to the accounting records.
• D)accounting records to the shipping documents.

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Definitions:

Insurance

A financial product that spreads the risk of loss among many individuals or entities, providing protection against financial loss from specific contingencies.

Bumper-To-Bumper Warranty

A comprehensive type of warranty for vehicles that covers almost all parts and systems between the front and back bumpers, excluding typical wear-and-tear items.

High-Quality Car

A vehicle that exceeds standard expectations in terms of performance, durability, and features, often associated with a higher price.

Signaling Device

An object or action that is used to convey information or instructions to others, often without the use of words or direct communication.