Which of the Following Tests of Control Most Likely Would

question 48

Multiple Choice

Which of the following tests of control most likely would help assure an auditor that goods shipped are properly billed? Checking that the client has:

• A)scanned the sales journal for sequential and unusual entries.
• B)examined shipping documents for matching sales invoices.
• C)compared the accounts receivable ledger to daily sales summaries.
• D)inspected unused sales invoices for consecutive pre-numbering.

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Definitions:

Misrepresentation

A false statement of fact made by one party to another party, which induces that other party to enter into a contract.

Convicted

Being found guilty of a crime by a court of law or through a guilty plea.

Economic Duress

A situation where a party is induced to enter into a contract or agreement under unlawful pressure involving threats to their economic stability.

Amended Contract

A contract that has been modified or changed after its original execution, usually involving additional agreements or alterations to existing terms.