[Adapted from Wiley CPA Review] Dana, an Auditor for the Audit

question 51

Essay

[Adapted from Wiley CPA Review] Dana, an auditor for the audit firm C&C,
recently finished up testing controls relating to management's assertion concerning
the completeness of sales transactions. In her audit work papers, Dana included the
following:
• "I inspected the entity's reports of prenumbered shipping documents that have not
been recorded in the sales journal"
• "In the course of my testing, I have found 0 items that have been sold but have not
recorded in the sales journal."
• "Since testing was performed without exception, I have determined that the controls
to address the completeness of sales transactions are operating effectively."
Which essential elements of AS 3's documentation requirements did Dana omit from
her documentation?

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Definitions:

Sixth Graders

Students who are in the sixth grade of their school education, often around the age of 11-12 years.

Formal Operations

The stage in Piaget's theory of cognitive development where individuals learn to think abstractly and reason logically.

Methodology

A system of methods and principles used in a particular discipline or field of study to gather and analyze data.

Brain Development

The process of growth and maturation of the brain, which includes changes in structure, function, and complexity over time.