Which of the Following Audit Procedures Is an Auditor Most

question 69

Multiple Choice

Which of the following audit procedures is an auditor most likely to perform in testing controls related to management's assertion about the completeness of sales?

• A)Verify that extensions and footings on the entity's sales invoices and monthly customer statements have been recomputed.
• B)Inspect the entity's reports of pre-numbered shipping documents that have not been recorded in the sales journal.
• C)Compare the invoiced prices on pre-numbered sales invoices to the entity's authorized price list.
• D)Inquire about the entity HYPERLINK "" .

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Definitions:

Medicare Tax

A federal tax that funds Medicare, a health care program for individuals who are 65 years and older or meet other specific criteria, deducted from employee wages with an employer match.

Social Security Tax Rate

The rate at which income is taxed to fund the Social Security program, typically shared between employees and employers.

Medicare Tax Rate

The percentage of an individual's wages that is withheld or paid toward Medicare, a U.S. government health insurance program.

Net Pay

The amount of an employee's income after all deductions like taxes, insurance, and retirement contributions have been subtracted.