If the Objective of a Test of Details Is to Detect

question 34

Multiple Choice

If the objective of a test of details is to detect the overstatement of sales, the auditor should trace transactions from the:

• A)cash receipts journal to the sales journal.
• B)sales journal to the cash receipts journal.
• C)shipping documents to the accounting records.
• D)accounting records to the shipping documents.

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Definitions:

Income Offer Curve

A graphical representation depicting how an individual's optimal bundle of goods changes as their income changes, keeping prices constant.

Utility Function

A mathematical representation of an individual's preference ordering over a set of goods or outcomes.

Income

The financial gain earned or received by an individual or entity, usually through work, investments, or business operations.

Nuts

Hard-shelled seeds of certain plants that are edible and often rich in nutrients such as fats, proteins, and carbohydrates.