While Auditing the Sales System of Candle Pty Ltd You

question 41

Multiple Choice

While auditing the sales system of Candle Pty Ltd you have determined that there is a risk of sales being misstated, and that this potential misstatement is associated with the completeness assertion.Which of the following would be an appropriate audit response to this assessed risk?

• A)For all debtors greater than 30 days overdue, evaluate whether there is appropriate correspondence with the debtor to encourage repayment of the debt.
• B)Select a sample of sales invoices and test to related shipping documents.
• C)Select a sample of shipping documents test to related sales invoices and the sales journal.
• D)Ensure that the sales order is appropriately authorised.

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