In the Audit of the Revenue of Hiram Manufacturing Company,the

question 45

Multiple Choice

In the audit of the revenue of Hiram Manufacturing Company,the auditors obtain a number of shipping documents shortly before year-end and immediately following the year under audit.The auditors compare the documents to the sales journal in order to test which of the following?

• A)existence of sales.
• B)presentation and disclosure of receivables.
• C)cutoff of sales transactions.
• D)completeness of receivables.

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Definitions:

Standard-Size

Referring to items or products that are made to a specific, uniform set of dimensions or measurements to ensure consistency and compatibility.

Legal Assent

A mutual agreement under contract law wherein all parties involved acknowledge and adhere to the terms of a contract, making it legally binding.

Scienter

Knowledge of wrongdoing or fraudulent intent, often a necessary element in fraud cases.

Intent To Deceive

A deliberate act or condition of willfully misleading someone or concealing the truth to gain an unfair advantage.