Which of the Following Audit Procedures Does Not Address Existence/occurrence

question 42

Multiple Choice

Which of the following audit procedures does not address existence/occurrence for accounts receivables and sales?

• A)Trace bill of lading to sales invoice and sales journal.
• B)Confirm balances of unpaid invoices with customers.
• C)Examine subsequent collections.
• D)Scan sales journal for duplicate entries.

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Definitions:

Noncumulative

A characteristic of certain preferences or instruments that do not allow for the accumulation of unpaid dividends or benefits if they are not paid in a given period.

Nonparticipating

In the context of insurance or preferred stock, it refers to policies or shares that do not share in the profits beyond a specified amount.

Weighted-average

A calculation that takes into account the varying weights of different items in a dataset, often used in inventory valuation or determining cost per unit.

Common Shares

Equity securities that represent ownership in a company, providing voting rights and potential dividends to shareholders.