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

question 19

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 collection.
• D)scan sales journal for duplicate entries.

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Definitions:

Annual Accounting Period

An annual accounting period is a 12-month period over which a company reports its financial performance and prepares financial statements.

LIFO Reserve

The difference between the cost of inventory calculated using the Last-In, First-Out (LIFO) method and the cost using the First-In, First-Out (FIFO) method.

Financial Statements

Documents that report on a company's financial performance, position, and cash flows, typically including the income statement, balance sheet, and statement of cash flows.

Sales Units

The number of units of product sold within a specific period, often used to measure sales volume and performance.