Which of the Following Audit Procedures Is the Most Effective

question 69

Multiple Choice

Which of the following audit procedures is the most effective in testing sales for understatement?

• A)Analyze the aged trial balance of recorded accounts receivable.
• B)Confirm recorded accounts receivable.
• C)Trace a sample of shipping documents to sales invoices recorded in the sales journal.
• D)Vouch a sample of recorded sales from the sales journal to shipping documents.

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Definitions:

Self-Respect

The pride and confidence in one's own worth and dignity, derived from self-awareness, integrity, and ethical behavior.

High-Machs

Individuals characterized by high levels of Machiavellianism, often displaying manipulative, deceptive, and exploitive traits in personal and professional relationships.

Cynical View

A perspective that generally mistrusts or doubts the sincerity and goodness of human motives and actions.

Negative Affectivity

Describes a personality trait characterized by a pervasive pattern of negative emotions and poor self-concept.