An Auditor Is Testing Sales Transactions

question 57

Multiple Choice

An auditor is testing sales transactions.One step is to trace a sample of debit entries from the accounts receivable subsidiary ledger back to the supporting sales invoices.What would the auditor intend to establish by this step?

• A)All sales invoices have been recorded.
• B)Sales invoices represent bona fide sales.
• C)Debit entries in the accounts receivable subsidiary ledger are properly supported by sales invoices.
• D)All sales invoices have been properly posted to customer accounts.

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Definitions:

Traditional Media

Forms of mass communication such as newspapers, television, and radio that have been commonly used prior to the digital era.

Social Media

Digital platforms that enable users to create, share content, or participate in social networking.

Credibility

Credibility involves being trustworthy and reliable in what is communicated or presented to others.

Media Richness

A theory that evaluates different communication media by their ability to reproduce the information sent over them, affecting how effectively they convey complex messages.