An Audit Team Is Auditing Sales Transactions

question 7

Multiple Choice

An audit team is auditing sales transactions.One step is to vouch a sample of debit entries from the accounts receivable subsidiary ledger back to the supporting sales invoices.The purpose of this audit procedure is to establish that

• A) Sales invoices represent bona fide sales.
• B) All sales have been recorded.
• C) All sales invoices have been properly posted to customer accounts.
• D) Entries in the accounts receivable subsidiary ledger were properly invoiced.

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Definitions:

Homogeneous Catalyst

A catalyst that is in the same phase (solid, liquid, or gas) as the reactants, facilitating the reaction uniformly.

Physical State

The physical state refers to the distinct forms that different phases of matter take on, primarily solid, liquid, and gas.

Reactant

A substance that undergoes chemical changes in a reaction.

Reaction Intermediate

A transient species formed during a chemical reaction that does not appear in the overall reaction equation.