An Audit Team Is Auditing Sales Transactions

question 91

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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